Major Lay-offs At Sony Affecting Divisions Worldwide

Sony confirmed via press release last evening that massive lay-offs have hit the company. One of the world’s largest videogame, phone and television manufacturing companies will continue to shed 10,000 workers or 6% of its workforce. According to the release all areas will be affected including online services like the Sony Entertainment Network (formally PSN), Sony Ericson Smartphones and Research and Development.

Sony Japan reported a loss of several billion yen for the fiscal year 2013 and hopes to have things turned around by the time their fiscal year 2014 results are reported sometime next year. These layoffs have been staggered across Sony’s major divisions, the original intent to lay-off 10,000 workers hinted at this past April and August. The next phase of these reductions will take place at Sony’s Tokyo headquarters as the company moves office space to save money this October, as well as a shutdown of the Sony Ericson Partnership.

Speaking about their mobile phone situation Sony has stated:

“Sony has identified the mobile business as one of its core businesses and the Xperia™ smartphone portfolio continues to gain momentum with customers and consumers worldwide,”

On the gaming front Sony has released a few big titles this year like the rebooted Twisted Metal, several HD collections and has a mash-up fighting title, Playstation Battle Royal in the works for release later this fall. Unfortunately none of these titles have been massive system sellers despite critical success and fan appeal. Even the introduction of a new “slim 2.0” model of PlayStation 3 packing a bigger hard drive can’t do much it seems, as the revised PS3 Slim has gained little buzz.

IGN sums up the company’s restructuring plan rather concisely:

Sony’s hope is to save $378.6 million a year by cutting these 10,000 jobs, indicating that, if the company reports a similar financial situation at the end of this quarter, they may be back in the black.

Times are tough at Sony and with the Ps3 hitting its sixth anniversary next month gamers may begin to look at other avenues for their fix. The PS Vita has slumped despite it being an impressive piece of kit and Sony’s next console isn’t even rumored to be acknowledged until sometime next year, making a launch in 2013 unlikely.

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