Sony seeks to cut $2.8 billion costs by 2010
Company to consolidate manufacturing, reduce headcount, bonuses and salaries
Sony has detailed plans to cut costs by JPY 250 billion (USD 2.8 billion / EUR 2.1 billion) by March 2010, following revised estimates that it is to lose JPY 150 billion (USD 1.68 billion / EUR 1.29 billion) for the financial year ending March 2009.
The company had originally planned to cut costs by JPY 100 billion, but has significantly increased efforts as all divisions - games, electronics, pictures and financial - are expected to perform worse than anticipated.
LCD TV design and manufacturing will be consolidated as part of the measures, with the company closing Sony EMCS Corporation's Ichinomiya TEC site by June this year. There are also plans to cut global headcount in the TV design operations and related divisions by 30 per cent by the end of March 2010.
The company also intends to standardise global hardware and software design and is integrating its worldwide design and R&D resources. Certain aspects of software development will be outsourced, said the company.
Sony will also consolidate LCD panel and battery operations in Japan.
All bonuses for executive staff will be reduced for the fiscal year ending March 31, and three CEOs will waive their entire bonus for the remaining year.
Management level employees' bonus and base salary are also to be reduced, and the company will introduce an early retirement program.