As part of a plan to reverse heavy losses, Sony plans to split its TV division, sell its PC unit, and cut 5,000 jobs.
Sony is in the process of restructuring itself yet again. The Japanese electronics and entertainment giant has had large-scale job cuts in the past. In 2005, 2008, and 2013 the company cut 10,000; 8,000; and 10,000 jobs, respectively. Now the struggling tech giant will be cutting an additional 5,000 jobs. The company will also be selling off a brand and a business in this round of restructuring. Vaio computers was once a central division for the company but is now an unprofitable burden for Sony, one that it is more than happy to be rid of. The PC division will be transferred to a new company established by JIP; definitive terms of this agreement will be reached by March of 2014. Sony's television business won't be completely removed from the company, but it will be spun off to a wholly-owned subsidiary by July of 2014. There are no plans to sell off the struggling TV division, according to Sony Corp CEO Kazuo Hirai, "TV remains an important category for Sony."
Sony plans to focus on its mobile product lineup which has seen growth, unlike the television and PC divisions. The company has already benefitted from growth in these sectors saying that "a significant increase in smartphones" boosted its earnings for the last quarter of 2013. The company's game division also had a jump in operating income after the release of the PlayStation 4 console. Sony plans to rebuild the company around these two promising divisions.
Photo credit: Leonardo D'Amico via Flickr
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