We've already heard from Japan's Nikkei Daily what Sony plans to do to cut loses. Now, let's hear from Sony.
Today Sony announced measures to improve profitability and drive growth — in short, start making money again. The three areas of focus according to the corporate giant:
• Structurally reform Sony's core electronics operations to better compete with its best in class peers in terms of speed to market and profitability.
• Continue margin improvement activities to lessen the impact of the weak economic profile of key markets.
• Accelerate the integration between products and network services by leveraging the combined strengths of Sony's electronics and computer entertainment operations.
Back in December, Sony announced a series of measure aimed at total annual savings of ¥100 billion (US$1.21 billion) by the end of fiscal March 2010.
But, the company has gone one step further and states today, "Sony intends to accelerate these actions, and in addition, implement further initiatives which are being announced today. Through these measures, together with anticipated restructuring to be achieved within the game, music and pictures businesses, and significant cost reductions in advertising expenditures, general expenses, logistics and other expenses, Sony now anticipates that it will achieve group-wide cost reductions of 250 billion yen (compared to the current fiscal year ending March 31, 2009) in the fiscal year ending March 31, 2010."
Those measures include the previously mentioned LCD TV factory closings and executive bonus waving, Sony is also stepping up an early retirement program. No further word yet on this "anticipated restructuring" with regards to its gaming division.