*** Update: Enobong Etteh from BooredAtWork.com joined me on Youtube to discuss all the Sony news announced today (embedded below)***
It seems to be the major challenge for large corporations, adapting to current market trends, and attempting reorganization.
Sony has their hands in a lot of different tech markets: phones, PC’s, TV’s, Cameras, Playstations, and media (TV/Films/Music). That’s a big ship to steer, and they’ve attempted two previous company wide reorganizations in 2009 and 2012. Ahead of their positive third quarter financial statement showing a 20% revenue increase over the same period in 2012 thanks to the PS4. Unfortunately they’re forecasting a shocking $1 Billion loss for the fiscal year, and now Sony is announcing their next major corporate reform plans.
Their intention with TV’s is to reduce R&D costs, and streamline manufacturing. They’ve reduced losses from this division from 147 Billion Yen to 69 Billion Yen over the course of a year, and they estimate they should be able to reduce that further to 25 Billion Yen ending fiscal year 2013. They don’t expect the TV division to become profitable until early 2015 (ending fiscal year 2014).
More drastic, Sony is also selling off their VAIO PC division. Rumors pointed to VIZIO or Lenovo possibly acquiring them, but it’s now official that Sony will be selling to Japan Industrial Partners Inc. It’s unknown how much the PC line will be sold for. Sony will cease design and production of new PC models after the current announced line up of PC’s is released this Spring.
On top of these measures, Sony will also be cutting 5000 jobs in response to this new poor forecast. In early trading this morning Sony stock is up almost 5% following the announcements.
Enobong Etteh from BooredAtWork.com joined me in a Google Hangout to discuss the announcements:
Full Sony press release below.
Continue reading “UPDATED: Sony’s Next Stage? Reforming TV Business, Selling Off PC Division”
