Sony will eliminate 10,000 jobs globally this year and spend nearly $1 billion on restructuring as the loss-making Japanese electronics and entertainment giant attempts to revive its business after four years of consecutive losses.
New CEO and president Kazuo Hirai said that the company will cut about 6 per cent of its global workforce, and turn around its loss making TV business over the next two years.
The restructuring will would cost the Tokyo-based company 75 billion yen ($925.7 billion) this fiscal year.
Earlier this week, Sony said that it is looking at a 520 billion yen ($6.4 billion) annual net loss, which is double its earlier forecast and marks the fourth straight year in the red, worsened by writing off deferred tax credits mainly in the US
"As CEO, I take this very seriously. But at the same time, it strengthened my resolve to transform Sony," Hirai told journalists at a press conference. "Employees too want to restore Sony to its former glory and go beyond."
Best known for once revolutionary products like the Walkman and Playstation, Sony has blamed the losses on fierce competition, falling prices, the flooding in Thailand last year, and the high yen.