Tuesday, April 10, 2012

New Sony boss under pressure as more losses announced


Pressure has increased on Kaz Hirai, Sony's new chief executive, as he prepares to reveal his turnaround plan for the struggling Japanese giant.

Sony today forecast a fourth straight year of losses, blaming American tax expenses, as well as weak business units such as its television manufacturing division.
Mr Hirai, who took over as chief executive from Sir Howard Stringer at the start of this month, has said he is prepared to take “painful steps”, including withdrawing from businesses.
The company veteran, known for reviving the PlayStation gaming operations through aggressive cost-cutting, has promised to get the struggling television business - which alone has lost $10bn in 10 years - back on its feet within two years.
He already plans to slash 10,000 jobs, or about six per cent of Sony’s work force, according to reports.
Some analysts have called for further radical action from Mr Hirai, who is due to introduce his strategy on Thursday.
“The old Sony culture would only allow it to make things that were the best globally,” said Tetsuru Ii, president of Commons Asset Management.
“Under that logic, does it make sense for Sony to continue its TV business, when it's not even the market leader in Japan?”
Sony told investors it expects to record a $6.4bn net loss for the financial year just ended, with tax expenses in the United States hitting the bottom line.

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