Sony cuts 16,000 jobs and reports net loss

Sony is expected to report a $2.9 billion loss this year for the first time the company has reported an annual loss in over 14 years. The company predicted a $1.65 billion profit for the year, and will likely report a $1.65 billion loss for the fiscal year.

Two television plants will be closed due to sliding demand for their product in Japan, where 2,000 employees will be let go. Sony also plans to reduce the number of manufacturing sites by 10 percent, from the 57 manufacturing facilities worldwide. They also hope to reduce investment in the electronics business department by 30 percent, over the next fiscal year, ending March 31.

Sony, like many other companies, including Microsoft, who plan to cut 5,000 jobs, has been struggling during the economic meltdown. Sony has also announced they will be cutting 8,000 jobs in its electronic business departments worldwide, as part of a move to help eliminate costs. The company plans to eliminate an additional 8,000 employees that are mostly temporary and contract workers. Sony's full-time global workforce totals 160,000 employees.

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