Sony to Cut 5,000 Jobs As It Sells PC Division
Published on: 6th Feb 2014
Note -- this news article is more than a year old.
Sony has announced plans to sell off its computer business, and will be split off into a separate company, which is often the first stage ahead of a sale.
Despite reforms, the company said that it does not expect the two divisions to return to profit in the short term.
The changes were announced as the company forecast a net loss of US$1.1 billion for the current financial year.
As a result, Sony is selling its Vaio branded computer division to Japan Industrial Partners (JIP), and will focus instead on smartphones and tablets in future.
As a part of the business transfer to JIP, Sony will cease development of PC products. Manufacturing and sales will also be discontinued after the Spring 2014 lineup to be launched globally.
Approximately 250 to 300 Sony employees involved in PC operations are expected to be hired by the new company established by JIP.
The company also said that it is looking to streamline its headoffice to reduce costs by 30% by the end of 2015.
In total some 5,000 jobs are expected to be lost by all the changes -- 1,500 in Japan and 3,500 overseas.