Sony Japan is reducing their work force by a significant 2000 jobs, with the PlayStation division getting the most staff cuts. Although PlayStation is one of Sony’s most recognizable brands, it’s also a money sink.
That’s been par for the course for the PlayStation division, which has been in the red since launching the PS3. As The Next Web reports, about 10,000 job cuts are expected in total:
The company says that it is making the changes to “revitalize and grow” its electronics business and it says that it is expecting to save $378 million (30 billion yen) annually from next year. The basis of the changes was laid back in April when the firm announced that it would reduce its headcount by 10,000 — including 3,000-4,000 in Japan — as it implements a $945 million (75 billion yen) restructuring program.
The PlayStation-maker is haemorrhaging cash and its most recent financial results, published in August, saw income before tax plummet 59 percent to hit $118.5 million (9.4 billion yen). Net losses for the three-month period grew to $310 million (24.6 billion yen), up from $195.3 million (15.5 billion yen) a year previous.
Sony has been particularly strapped for cash this year, attempting to sell off their New York headquarters, giving executive employees salary cuts, and generally trying to tighten budgets everywhere they can. However, the cuts to the PlayStation division might come back to hurt them, as the PS3’s lifecycle is winding down in anticipation of the PlayStation 4.
However, that might not be a concern. Cameras, HDTVs, mobile gear, and tablets are the company’s big money makers, and Sony likely wants to focus on corner of the market where they’re strongest.
Source: The Next Web