Is a Slimmer Sony Coming?

With the new guy in charge it looks like Sony are trying to get back on an even keel.

Few doubt that Sony, a much diminished force and brand, needs some shock therapy to revive itself. After all, its core electronics division, which accounts for 70% of sales, has lost money on an operating basis for the last two years.

Sony’s cost structure is bloated, and it has plenty of noncore businesses that could be sold off to raise cash for the main event at Sony: Turning out ultracool gadgets and must-have content that will wow global consumers once more.

Stringer is slated to roll out his restructuring plan on Sept. 22. In recent months, market chatter and the CEO’s comments have made pretty clear Sony has been looking into ways of streamlining its electronics product lineup, reorganizing its global plant network, and instituting some pretty painful layoffs.

Word has it that there will be huge lay-offs in the pipeline, perhaps as high as 15,000 people. And stock usually goes up after redundancy announcements, Sony currently trade at $36.55 a share.


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