Print 12 comment(s) - last by glennco.. on Apr 9 at 11:50 PM

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+."

Newly appointed 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. 

Source: CNET

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

May Give Up Bonuses
By jeepga on 4/9/2012 11:54:59 AM , Rating: 2
I find it pretty screwed up that the executives who are primarily responsible for the mess are getting treated so nicely. No cut, nothing, other than they may have to give up their bonuses...

RE: May Give Up Bonuses
By Dr of crap on 4/9/2012 12:40:09 PM , Rating: 2
Hey once you make to that level you protect your own!

Golden parachute anyone?

RE: May Give Up Bonuses
By dark matter on 4/9/2012 3:34:08 PM , Rating: 2
How young are you?

RE: May Give Up Bonuses
By Jedi2155 on 4/9/2012 4:11:16 PM , Rating: 2
Bonuses are probably 1/2 their pay....

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
Related Articles

Copyright 2015 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki