About 5 per cent of the Sony workforce is to be let go by April 2010 as Sony rallies a defence against the ”acute downturn” in the global economy.
Layoffs will be focused around its ”electronics business” as they reduce investment and manufacturing operations. Japan’s economy has shrunk faster than predicted.
The cuts are in response to ”sudden and rapid changes in the global economic environment”, as the Japanese economy shrunk by 1.4 per cent this past quarter - way above what was expected.
”Particularly within its electronics business, where Sony has been most affected by the acute downturn in the economic climate, the company has already undertaken certain short-term measures, including adjusting production, lowering inventory levels, and reducing operational expenses,” read Sony’s statement.
”Going forward, Sony intends to adjust product pricing to mitigate the impact of the appreciation of the yen, curtail or delay part of its investment plans, and downsize or withdraw from unprofitable or non-core businesses.”
”Furthermore, Sony plans to realign domestic and overseas manufacturing sites, reallocate its workforce and reduce headcount.” One such site is at the Dax Technology Center in France.
For now there seems to be no plans to reduce resources where the PlayStation is concerned but that they may change if Japan’s markets continue to weaken.
Source: GamesIndustry.biz
