Sony doubles losses estimate, eyes job cuts

Sony doubles losses estimate, eyes job cuts

Sony has told shareholders it expects to lose ¥520bn (£4.05bn) in its current financial year, more than double the estimate it made two months ago.

The manufacturer blamed a write-off of deferred tax assets in the US for the increased estimate. In February, it said it expected to lose ¥220bn (£1.71bn) for the year ending 31 March 2012. However, it said it expects to bounce back during its current financial year, with estimated income of ¥180bn (£1.40bn) for the year ending 31 March 2013.

Press reports this week suggested Sony CEO Kazuo Hirai, who took the helm this month, is on the verge of announcing a 10,000 job cutting programme. If the cuts go ahead, this would amount to 6% of Sony's global workforce. Hirai is expected to outline his strategy later this week.

The manufacturer has had recent success in the smartphone market, with its Xperia S handset predicted to be a top five bestseller.

Editor: Graeme Neill

Written by Mobile Today
Mobile Today

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