Sony to Axe 8,000 jobs

Sony to Axe 8,000 Jobs
Electronics division hit as economic crisis deepens.
by IGN Staff

UK, December 9, 2008 – Sony is to close 10% of its manufacturing sites, losing some 8,000 jobs in the process as the Japanese company feels the effects of the deepening economic crisis.

Sony is still believed to be incurring a loss on every PlayStation 3 that it sells, and financial expert Katsuhiko Mori told BBC that although “the number sounds big, this staff reduction won’t be enough. Sony doesn’t have any core businesses that generate stable profits – the next thing we want to see is what is going to be the business that will drive the company.”

The cutbacks come as Japan feels the impact of the global recession, with the country’s economy reportedly shrinking by some 0.5% in the past three months. Expected to be implemented by April 2010, there has been no confirmation where the cuts will take place, nor what impact they will have on Sony’s gaming division.

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That this rough as hell. We hope Sony can turn it around next year.