Sony Chief Executive Howard Stringer says he will take a pay cut along with other executives and managers while more jobs will be cut in an effort to reduce costs and return to profit.
Sony SNE slashed its annual earnings forecast earlier in the day, projecting its first net loss in 14 years on slumping sales, a strong yen and restructuring costs.
In a hastily called news conference Thursday at Sony's Tokyo headquarters, Stringer acknowledged past restructuring measures including job cuts and plant closures aren't going to be enough.
He says Sony faces intense competition from rivals like Samsung Electronics, Apple and Microsoft not only in gadgets but also in network services.
Last month, Sony announced widespread cost cuts, including trimming 8,000 of its 185,000 jobs and shutter five or six plants — about 10% of its 57 factories. It also said it was cutting an additional 8,000 temporary workers, who aren't included in the global work force tally.
Sony also plans to reduce its electronics investments by about one-third by the end of March 2010, although it did not give specific numbers.
The moves are expected to deliver more than 100 billion yen ($1.1 billion) in savings a year by March 2010, the company says.
Sony, which makes the Walkman player and PlayStation 3 game machine, had been gradually recovering under earlier cost-cutting reforms spearheaded by Stringer in 2005. A Welsh-born American, Stringer is the first foreigner to head Sony.