14 DAY TRIAL // It seems that the global recession has an impact on the entire industry, since not even the gaming segment can dodge its effects and still maintain a profit. After big gaming companies like Electronic Arts or Microsoft have or are planning to employ some major layoffs in their teams, it seems that Sony will confirm all the ugly rumors that have been going around lately and will continue its layoffs in the following time period.
As we reported a short time ago, it seems that Sony is indeed in some big financial trouble, with the company preparing to announce the first annual loss in over 14 years, and will take some severe measures in order to maintain a certain degree of profitability and keep itself from going bankrupt. Although the gaming department is turning out a profit, thanks to the PlayStation line, and probably won't experience major layoffs, other sections of the large electronic corporation won't be so lucky.
This is especially true with the company's local Japanese division, as the CEO of the company, Howard Stringer, will announce today the fact that it will close down one of the two TV manufacturing plants, as the LCDs in the Bravia lineup haven't really been selling very well, as a consequence of the recession, and that the company will cut over 2,000 jobs.
Analysts believe that this measure is only a small part of the company's large plan with which it hopes to make a profit again. These jobs will be eliminated largely by natural attrition, as a lot of workers will go into forced retirement and their positions will be left unfilled. Let's not forget that the company said that it would cut almost 16,000 jobs across its worldwide branches and that five to six plants would be shut down, in order to assure the fact that the predicted $1.1 billion loss achieved this financial year won't have a big impact on Sony.
Let's hope that things will improve for the Japanese electronics maker and that profit will return in order for the PlayStation lineup to receive new features.