Sony to Cut 8,000 Jobs Amid Global Downturn

Sony has adjusted production and lowered inventories, but tough times demand more drastic efforts, it said in a statement.

In this Jan. 27, 2006 file photo, a woman walks by the headquarters of Sony Corp. in Tokyo. Sony...

In this Jan. 27, 2006 file photo, a woman walks by the headquarters of Sony Corp. in Tokyo. Sony says Tuesday, Dec. 9, 2008 that the Japanese company is slashing 8,000 electronics jobs around the world, or 5 percent of its global work force in that sector, as it tries to boost the profitability of its core business amid a global downturn. (AP Photo/Shuji Kajiyama, FILE)

(AP)

The cost-cutting plan includes postponing an investment to boost production of liquid crystal display TVs in Slovakia because of a plunge in European demand for flat-panel TVs.

"These initiatives are in response to the sudden and rapid changes in the global economic environment," Sony said.

Sony will end production at some plants, including one in France that makes tape and other recording media and will continue moving electronics production to lower-cost countries. Manufacturing sites will be reduced by about 10 percent, or five or six plants, from 57 today.

Sony will also trim spending in semiconductors, and will outsource a portion of the production it had planned for image sensors for mobile phones.

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The cost of the job cuts and plant shutdowns will be disclosed next year when the company updates its forecast for the fiscal year, the company said.

Hara said Sony will reduce investment in electronics by 30 percent for the following fiscal year ending March 2010. But he said specific numbers and details had not been decided.

Apart from the 8,000 electronics job losses, Hara said Sony would cut at least 8,000 temporary jobs in the same sector by the end of March 2010. He said temporary workers are not counted in the tally of Sony's global work force.

Sony recently slashed its full-year earnings projection, citing weaker consumer demand and a stronger yen. For the fiscal year through March 2009, it is expecting a 150 billion yen ($1.5 billion) profit, down 59 percent from the previous year.

Hara said it was unclear whether a further revision will be needed for the current fiscal year.

Sony's July-September profit plunged 72 percent from a year earlier to 20.8 billion ($224 million).

The announcement came shortly after trading ended in Tokyo, where Sony shares rose 3.9 percent to 1,896 yen ($20).

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