Sony to cut workforce, increase outsourcing
Sony has announced measures to cut costs and improve operating efficiency as a direct response to the sudden changes in the global economy. Plans include workforce reductions, a realignment of manufacturing sites with increased utilization of OEM/ODM partners, and a review of its investment commitments. The plans are scheduled to come into effect by the by the end of its fiscal year ending March 31, 2010.
Sony outlined measures to curtail previously announced mid-term investment plans with the aim of reducing expenditures by 30% compared to earlier guidance. The company said it will cut back on investments to expand manufacturing capacity for handset CMOS image sensors while increasing outsourcing to third parties. Sony also said that it will postpone investment in its Nitra, Slovakia LCD TV assembly plant.
Sony disclosed that by the end of the current fiscal year two more manufacturing facilities sited overseas will also be closed. Sony Dax Technology Center, France, which manufactures tape and other recording media, was named as one of the sites. Sony also detailed plans reduce its total number of manufacturing sites by 10%, from the current total of 57, in 2010 by consolidating production in low-cost regions, and increasing outsourcing. Current major OEM partners for Sony in Taiwan include Foxconn (Hon Hai Precision Industry) – digital cameras and notebooks, Arima Communications – handsets, Chunghwa Picture Tubes (CPT) – panels, and Quanta – notebooks.
Finally, Sony said that its current worldwide staff of approximately 160,000 employees will be reduced by up to 8,000 by 2010.
Sony said that it will discuss further details of all the announced measures during its fiscal third quarter earnings announcement scheduled for January 2009.
Sony outlined measures to curtail previously announced mid-term investment plans with the aim of reducing expenditures by 30% compared to earlier guidance. The company said it will cut back on investments to expand manufacturing capacity for handset CMOS image sensors while increasing outsourcing to third parties. Sony also said that it will postpone investment in its Nitra, Slovakia LCD TV assembly plant.
Sony disclosed that by the end of the current fiscal year two more manufacturing facilities sited overseas will also be closed. Sony Dax Technology Center, France, which manufactures tape and other recording media, was named as one of the sites. Sony also detailed plans reduce its total number of manufacturing sites by 10%, from the current total of 57, in 2010 by consolidating production in low-cost regions, and increasing outsourcing. Current major OEM partners for Sony in Taiwan include Foxconn (Hon Hai Precision Industry) – digital cameras and notebooks, Arima Communications – handsets, Chunghwa Picture Tubes (CPT) – panels, and Quanta – notebooks.
Finally, Sony said that its current worldwide staff of approximately 160,000 employees will be reduced by up to 8,000 by 2010.
Sony said that it will discuss further details of all the announced measures during its fiscal third quarter earnings announcement scheduled for January 2009.
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