Sony Confirms 10,000 Layoffs Plus Company-Wide Restructuring

The old PlayStation boss, Kaz Hirai was put in charge of all Sony Corp earlier this year.  Many questioned why Sony would do this, and the simple truth is that Kaz was responsible for helping Sony dominate the gaming industry for over a decade.  The PlayStation division of Sony made the company billions.  As of late the PlayStation brand has had a few missteps, particularly with the launch of the PlayStation 3, but there’s no questioning Kaz’s role in the overall success the company has had over the past 15 years.

Today the corporation in nowhere near as successful as they used to be back in the 80s and 90s.  Their television division is no longer in a fighting position, their music empire came crashing down with Apple’s introduction of the iPod, and their computer line is niche at best.  On top of all that, the company is expecting a $6.4 billion dollar loss this fiscal year!  Ouch!!!  Bottom line, drastic changes are in order if the company has long-term goals of staying profitable.

I think this slide from the corporate strategy meeting says it all.

Kaz Hirai announced a new action plan today under the moniker of “One Sony,” which will focus on gaming, digital imaging and mobile.  The plan is to have 70% of all profits coming from these three sectors by 2014.  Sony also plans to sell off several manufacturing plants that are no longer profitable on top of laying off around 10,000 employees.

Kaz outlined five key areas Sony will focus on:

1. Strengthening core businesses (Digital Imaging, Game, Mobile)

2. Turning around the television business

3. Expanding business in emerging markets

4. Creating new businesses and accelerating innovation

5. Realigning the business portfolio and optimizing resources

For your interest, this is a gaming website after all, Sony plans to place a large emphasis on the PlayStation 3, PlayStation Vita and PlayStation Network.  New subscription services and downloadable games will be offered on the PSN, and the PlayStation Suite is going to be rolled out as soon as possible.  For those that don’t recall, the PlayStation Suite is essentially software that allows other devices, notably tablets and smartphones to play original PlayStation games, and PSN titles.  These games can be original titles, or ports from existing software.

Kaz also outlined plans to focus a lot of attention on new cameras for the low-end and high-end user.  Their ailing television division will also be restructured in order to produce higher quality products, cheaper and to target emerging markets.

Naturally no gaming hardware was announced at this restructuring meeting, but it’s expected the inevitable PlayStation 4 will be a key driver of profit for the near future.  We’ll have more information on this story as it breaks.

Source: Sony Corp.

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