Sony cuts 8,000 jobs from its global workforce

by Stevie Smith - Dec 9 2008, 13:00

Following hot on the heels of sweeping job cuts made by Internet giant Yahoo, Japanese consumer electronics company Sony Corporation has this week become the latest technology heavyweight to bow to the pressures and demands of global belt-tightening.

Sony hits global workforce with 8,000 job cuts. Image: Ian Muttoo/Flickr.

More pointedly, Sony today revealed that it is to slash a massive 8,000 jobs in an effort to cut operational costs by $1.1 billion USD per year. The looming job cull, which will be executed by the end of Q1, 2010, will result in Sony hacking off some four percent of its total workforce or around 185,000 employees.In terms of ramifications, Sony’s decision will see the closure of around 10 percent of its international fabrication facilities (as many as six factories), reports The Associated Press, while investment will be pulled from poorly performing electronics businesses and some work will be outsourced to third parties.Other areas set to feel the after effects of Sony’s industry caution include a reduction of spending in the semiconductor industry, while the company plans to outsource some of its production for mobile phone image sensors.Commenting on the announcement, Sony Corp. senior vice president Naofumi Hara said the company will also reduce spending in electronics by some 30 percent for the year ending March 2010 and plans to cut an additional 8,000 temporary jobs throughout the sector.According to a statement released by Sony, the option to implement job cuts was forced into play after adjusted production and lowered inventories failed to properly address the ongoing decline of financial situations around the world.“These initiatives are in response to the sudden and rapid changes in the global economic environment,” explained the electronics titan.

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Sony cuts 8,000 jobs from its global workforce

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