Sony Will Cut 10,000 Jobs, Close Factories

Sony Corp. said today that it would cut 10,000 jobs globally, slash its number of factories and reduce costs by $1.8 billion in an ambitious restructuring bid to revive its stumbling electronics business.

The Japanese company, under new management since March, said it expected a group net loss of $90 million this fiscal year because the plunging prices of consumer electronics products have taken a hefty toll on earnings.

The changes, to be put in place by the end of fiscal 2007, which runs through March 2008, would result in a reduction of 4,000 workers in Japan and 6,000 elsewhere, while factories would be cut from 65 to 54, company officials said.

The bold turnaround plan comes under the fresh leadership of Howard Stringer, an American-British dual citizen who was named chief executive of the Japanese electronics and entertainment company in March as the first foreigner to head Sony Corp.

Sony has lost money in its electronics sector for two straight fiscal years, and has relied on its movie division and PlayStation consoles to lift profits.