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Sony lays off 16,000; will close factories

by Robert Palmer Dec 9th 2008 at 3:00PM

Sony announced today it plans to lay off 16,000 workers, close a handful of factories and reduce electronics investment by a third, as their comeback effort falls apart. Sony is both Apple's competitor in the mobile phone market and their partner for computer components, including batteries.

"Five or six" factories will be closed, with only one named so far: Sony Dax Technology Center, in France. Several other factories in Japan will be closed, and one other abroad, according to the IDG News Service.

8,000 full-time employees will be laid off, along with another 8,000 temps and contractors. Those 16,000 people represent about nine percent of their workforce.

Forbes.com's announcement of the layoffs attributed some of Sony's loss of revenue to Apple's dominance in the music player market, a torch Sony once carried.

Sony hopes the moves will save them a billion dollars going into its next fiscal year, which starts in April.



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Sony announced today it plans to lay off 16,000 workers, close a handful of factories and reduce electronics investment by a third, as...
 

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chucksav

Probably a few Blu-ray factories in that list.

December 11 2008 at 10:37 AM Report abuse rate up rate down Reply
Aaron

shouldn't this be on Engadget?

December 09 2008 at 4:11 PM Report abuse rate up rate down Reply
Chris

This is one of those articles where I find myself emotionally bifurcated. I really dislike Sony as a company, particularly after the root kit debacle among other no no's they've been apart of. As a matter of principle I no longer directly buy Sony branded products. However, reading this article reminds me that there is a human aspect to this as well. People losing their jobs is never nice to read about. Compound that with the current and foreseeable economic situation and now I have to concede, I actually feel bad for Sony.

I'm constantly amazed at how a little perspective changes everything.

December 09 2008 at 3:36 PM Report abuse rate up rate down Reply
Galley

I'm doing my share; I just bought a BDP-S550 BD player.

December 09 2008 at 3:36 PM Report abuse rate up rate down Reply
waiownsyou

Source says 4% of workforce, not nine....

December 09 2008 at 3:28 PM Report abuse rate up rate down Reply
2 replies to waiownsyou's comment
Robert Palmer

16,000 ÷ 185,800 = 0.08611.

December 09 2008 at 3:33 PM Report abuse rate up rate down Reply
SpinThis!

I believe the article is correct here—they probably got it right from Sony. You measure workforce by the number of hours, not number of people.

If you have a company of 10 people, 2 of which only work 20 hours a week, you have roughly 9 "full time" employees. If you cut both PT employees, you're not cutting 20% of your workforce, you're cutting 10%.

December 09 2008 at 5:28 PM Report abuse rate up rate down Reply
kie

shouldn't this be on Engadget if it isn't?
How is this Apple related?

December 09 2008 at 3:28 PM Report abuse rate up rate down Reply
7 replies to kie's comment
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