Sony expected to announce restructuring plan soon

Sony Corp, the maker of Bravia LCD TVs, Cyber-shot cameras and the Playstation game console, is expected to announce a restructuring plan this week, according to the Financial Times.

Last month the Japanese company outlined plans to curb investment, close five to six manufacturing plans and cut 16,000 jobs, to save $1.1 billion a year. However, industry analysts say that Sony will likely need more drastic measures in order to fight the sharp slowdown in the sale of electronics, due to the current global economic climate.

Talking to Reuters, chief fund manager at Ichiyoshi Investment Management, Mitsushige Akino said, "Sony's not in a position to halt all domestic production but it has to do something that drastic. If it announces plans to move production overseas while keeping only planning and development functions in Japan, that would be a positive."

According to the Financial Times, Chief Executive of Sony, Howard Stringer, is meeting resistance over plans to shift the company's focus from hardware to software, as well as job cuts in Japan, with the latter expected to meet some political resistance too.

If the Financial Times is correct, we can expect Sony to unveil details of its restructuring plan on Wednesday or Thursday.

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WHAT?! Restructuring you say??? I thought you were just supposed to fly down in your big jets and ask Congress for a bailout.

Here's an idea to get some revenue into your company's about you drop the price on current stock of the PS3 to a competitive (it's in the dictionary if you need a definition Mr. Sony MD) price point, rather than having stagnant stock, and then the increased revenue, although a loss, would y' you weather the storm....

Just a thought!

tiddlie said,
how's about you drop the price on current stock of the PS3 to a competative (it's in the dictionary if you need a definition Mr. Sony MD)

The word "competative" is in no dictionary I've ever read... You should practice what you preach tiddlie