Sony Announces Corporate Retooling
PARK RIDGE, NJ
Sony Corp., parent company of Sony Security Systems, has announced a corporate restructuring plan that will include the elimination of 20,000 jobs, or about 13 percent of its workforce. The company calls it part of a turnaround strategy to lift sagging profits, including a 25 percent drop in profit for the September quarter.
Of the 20,000 jobs to be eliminated, Sony says 7,000 will be in Japan with the rest distributed globally. The company’s goal is to slash its annual fixed costs by almost $3 billion by 2006. The specifics of the cuts have not been announced.
Rick Clancy, a Sony spokesman, says its too early to know what kind of hit Sony Security Systems will take in the corporate retooling, if any. “It’s not clear at all what will happen in the U.S. in general, let alone a specific division,” Clancy says. “There’s no direct affect and no immediate plan at this time. There’s no reason to even speculate.”
During the Oct. 28 announcement in Tokyo, Sony Executive Deputy President Ken Kutaragi said as part of the job cuts, overlapping administrative and corporate jobs in the U.S. would be integrated by moving more of its electronics and marketing operations currently divided between both coasts to the West Coast.
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