Sony with “worst loss ever”. 10,000 jobs cut coming.

I guess you already read the news on your daily magazine. Sony announced the worst loss ever, ¥520 billion for the past financial year. Converted this means a 6,4 Dollar or 4,9 Euro billion loss. Sony will cut 10,000 jobs to bring Sony back to profit within March 2012. There are many reasons for the bad results listed by NYT:
1) additional (unexpected) tax expense
2) heavy losses in its television business
3) strong yen
4) natural disasters in Japan and overseas.

The digital camera market is just a small part of Sony’s business and currently doing pretty decent thanks to the A77 and NEX-7. The problem is Sony has lost many battles like the music war with Apple and the TV war with Samsung. When I talk with my sources they more or less agree that Sony is quite slow and too heavy when it comes to take action. Probably the company has a to complex structure that leads to waste time and resources. That doesn’t necessary mean that you have to cut jobs! What matters more is to have a good management and clear and easy communication-action structure within the company.

Sorry if I repeat myself again but they lost so much money with their slow camera and lens release! The NEX-7 and Zeiss 24mm and 50mm are selling well but Sony can’t keep up with the production. Plus they are loosing money every day by not releasing new NEX lenses. Cutting jobs will not help if your product strategy…”sucks“?

I hope the latest rumors I am getting about the next FF camera are a good sign that Sony may anticipate the FF announcement. About time!

Follow Me