Sony to Cut 6 Percent of Its Global Workforce
April 9, 2012 10:38 AM
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These cuts come after the news of Sony's 2011 financial loss for the fiscal year, which totaled 260 billion yen, or $3.2 billion USD
Sony has announced that it will eliminate 10,000 employees in the wake of huge financial losses in 2011.
Cutting 10,000 jobs would equate to about 6 percent of Sony's global workforce. In addition to these losses, seven executives may be asked to give up their bonuses, including former CEO and current board member Howard Stringer.
These cuts come after the news of Sony's 2011 financial loss for the fiscal year, which totaled 260 billion yen, or $3.2 billion USD.
Sony has had some serious troubles in recent years that have led to this. One of the major issues was Sony's LCD TV business, which has had eight years of consecutive losses. The realization that this sinking ship will likely never produce any annual profits led Sony to
shake up its LCD TV business
last year, then eventually
sell its 50 percent manufacturing stake to Samsung
in their LCD joint venture called S-LCD Corporation.
In February, Standard & Poor's Ratings Services confirmed an
unfavorable outlook on Sony's long-term corporate credit rating
. It even dropped its long-term corporate credit and senior unsecured debt ratings on Sony from "A-" to "BBB+."
Sony CEO Kazuo Hirai
, which took the position starting April 1, plans to announce his plans for the company over the coming years this Thursday.
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A- to BBB+?
4/9/2012 11:05:21 AM
That's kind of harsh. I think they should totally be at least BBBB, if not BBBB+.
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