Sony cutting plants, 8,000 jobs by April 2010
by Justin McElroy 
{ Dec 9th 2008 at 8:45AM }
Two things: 1. We don't know how many of the cuts will be directly related to the PS3 and PSP, if any. 2. This makes perfect sense in an economic climate like this, with decreased demand guaranteed by the financial meltdown, Sony will want to make fewer products. We are, however, troubled by a quote from Katsuhiko Mori, a hedge fund manager who said "The number sounds big, but this staff reduction won't be enough." Here's hoping he's wrong.
Reader Comments (Page 1 of 1)
Velocifaptor @ Dec 9th 2008 8:54AM
I hate this news. It's heartbreaking.
Danzaiver @ Dec 9th 2008 8:54AM
If 8,000 staff reduction isn't enought is because the people they are firing have the smallest salaries. Poor people.
Lord Negatron @ Dec 9th 2008 9:08AM
I don't wish anyone to lose their job. Large companies tend to have positions and divisions that are quite trivial compared to their healthy salary. Mr. Mori should look into those as well, since the "reductions won't be enough". (pfft!)
Lord Negatron @ Dec 9th 2008 8:57AM
People are losing jobs due to economy/supply & demand. Boyz, lets keep that in mind before posting pointless rants stating "its over for Sony".
:P
atrimus @ Dec 9th 2008 9:03AM
it's FAR from over for Sony, but it does make the prospects of a PS3 price-cut (which is much needed to stimulate sales) all the more bleak.
Ignatius @ Dec 9th 2008 9:09AM
Didn't I read some news somewhere that Sony was sticking stringently to their high 'premium' prices?
Yeah, guess where that got them.
Marty @ Dec 9th 2008 10:50AM
It ain't over for Sony, obviously, but they sure are getting hit hard by the financial mess. They were one of the many Japanese companies to take a big hit on Wall Street, and their stock continues to slump. It lost over a third of its value, from what I've seen.
Muu @ Dec 9th 2008 8:58AM
8000 full time employees AND 8000 temps, for a grand total of 16,000.
I wouldn't be surprised if the Temp count is being played down significantly either, as those are much easier for companies to get rid of.
Cellien @ Dec 9th 2008 10:54AM
Yeah, I read that too on other sites, but the gaming sites are only reporting 8000 it seems.
ScottG13 @ Dec 9th 2008 9:02AM
Sony has made a lot of costly mistakes in the past year. They got by on some incredible luck with the PSX and PS2 that hasn't materialized this year thanks to an early release of the 360 that really gained steam despite MSFT's hardware issues. Plus with the Wii on the "casual" side that Sony owned last gen thanks to the DVD player in the PS2, things are looking a lot different.
Brand can do a lot, but not everything. Sony has found that out the hardware.
Noshino @ Dec 9th 2008 9:45AM
Well, that in part is true.
The problem is that it wasn't only one issue, but many that hit Sony at the same time and as such affected them greatly:
- Strengthening of the yen
- Global Recession
- Loss of marketshare on multiple industries
To that, add the fact that Sony runs razor thin profit margins (usually around 1-3%)
Hopefully they find a quick way to recover, but that doesn't seem likely for the time being.
Henry @ Dec 9th 2008 9:06AM
Who left that PS3 in a field?
Bu-dum-tish!
Hyams @ Dec 9th 2008 9:09AM
Sony's electronic division is to do with TVs, mobile phones and stuff.
PS3, PSP and PS2 are a different divsion, so *this* shouldn't affect their gaming consoles.
Still, unless they start making money soonish, I doubt the Sony higher-up will be happy.
Mr Khan @ Dec 9th 2008 9:18AM
If it were anything called onto the chopping block, it would be the PS3 and not the PSP, but Sony's strategy still looks towards long-term profitability for PS3, and if they lose their nerve in the short term, they could seriously damage that plan.
TracerBullet @ Dec 9th 2008 9:30AM
Agreed.
Business-wise, it would make sense for Sony to rather focus on the PSP and - sorry, sonyfans, but I'm talking business - the affordable PS2 on developing markets. The fact it still sells on regions like Japan shows the old "2" has potential to be profitable on alternative markets.
TracerBullet @ Dec 9th 2008 9:20AM
Muu is right. Bloomberg also mentions the 16,000 cuts figure. According that news site:
"The company will cut the number of manufacturing sites by 10 percent by the end of next fiscal year, from 57 currently. Sony will postpone investment plans at its plant in Slovakia that assembles liquid-crystal-display televisions for the European market and plans to end production at two overseas manufacturing sites, including one in France that produces tape and other recording media."
Sad news but, so far, no word on their Playstation line facilities.
jonjon72 @ Dec 9th 2008 9:22AM
This is bad news for everyone. No company is immune (except maybe Nintendo).
I would hate to see this become a flame war between MS and Sony fanboys. People are losing their jobs, families are being destroyed and worst of all, when this happens suicide numbers increase.
It is usually the lower level employees that take the hit when cutbacks are implemented. Very sad indeed.
Wiinterfang @ Dec 9th 2008 10:54AM
My Job is dead end and unrewarding and it makes me depress I live with a lot of stress yet I don't quit the job because it's so hard to find a good job these days and my job is not a big enterprise or some so it's up to us the employees to keep it a float and the pressure is so much is destroying my life, my family always tell my to go back to my country because they have seen change in my personality and body but I like this country and the only thing that keeps me here is the hope that things will be better sometime and the greatness nation of earth could rise like a phoenix.
sadly not everybody think like me and the kill themselves as a solution but this hardly solve anything and only create more pain and finances troubles for the onces left, I still dealing with the problems my father left when he died and that was 2 years ago.
Urza @ Dec 9th 2008 9:22AM
*fanboy* Sony's going down! Whooooooooooo! Burning Sony, Burning! You're console sucks! */fanboy*
Sucks to be a Sony employee. I suppose Black Friday sales weren't so good on Sony tvs and stereos this year.
BigD_145 @ Dec 9th 2008 10:03AM
You are / You're post sucks.
And you're not Master Chief...Nor do you own a flamethrower in real life.
Kspraydad @ Dec 9th 2008 9:30AM
Much of this is attributable to the Yen/US dollar exchange rate. If the economists are correct the US dollar is going to go down like Jenna Jameson in a block buster Vivid production. This will make this year look like a picnic for Japanese manufacturers next year.
Lee @ Dec 9th 2008 9:44AM
Yea don't delete my messages so I'll post it again.
This is the end of Sony.
Noshino @ Dec 9th 2008 9:47AM
(Joystiq staff, if you don't mind, don't delete his message so he can be mocked for it)
No, this is by far not the end of Sony, but it will be tough time
tmacairjordan87 @ Dec 9th 2008 10:03AM
Out of all the stupid things that are said on here, I doubt they went and deleted something like that (which is still a stupid thing to say don't get me wrong). Stop thinking that they care what you say :P
Wiinterfang @ Dec 9th 2008 10:47AM
Hey I don't like Sony very much and most people here know it but this is a sad news and your should be respectful.
Ethan @ Dec 9th 2008 10:54AM
Most companies are in a similar situation to Sony.
Oh no! Lee has predicted the end of the world!!
Duke @ Dec 9th 2008 3:40PM
Lee, are you really that ignorant?
Maverick Saturn @ Dec 9th 2008 9:47AM
Being in the hardware industry, its more likely to effect Sony then the other two companies, thus the reason SCE hasn't been hit by the crisis. People always need software, but they don't always need hardware, its like how people tend to need milk and bread over chocolate spread and coke.
Its sad to see this ongoing circle, woolworths hit rock bottom and literally had to sell stores for as little as £4. Jobs are being cut like crazy and those remaining are loosing motivation for fear they'll be next. Well known businesses are crashing, estate agents are crashing and dropping like flies and everyone is miserable.
This year will be the most dire christmas in a long time, and for many, new years resolution will be the HOPE that they manage to get back on thier feet financially.
Johnny Neat @ Dec 9th 2008 9:59AM
Sony has become the equivalent of a fat bloated Hydra. They have been run by out of touch CEOs with the belief that Brand name trumps all logic. They over price out sourced merchandise that isn't, in this case, even the best in the electronics arena for sometime. Making matters worse, they compete against themselves for profit & have no sense of synergy, causing one division to charge another. They, like the American Auto Industry, should fail because they are out of touch with reality and customer needs and concerns. They think, "We'll make it and they'll have to buy it, period." Problem is people might not be bright but they are being forced by economics created by corporate & elite greed into becoming more informed due to the fact that they can't afford to be as dumb and in the sand as they have been in the past. Times are changing, and if they, corporations & governments, don't change with them they will be left behind or dismantled.
Wiinterfang @ Dec 9th 2008 10:44AM
I agree with you specially on the Laptops, I always find myself asking people why the buy Sonic laptops and HDTVs ( work in from of a Sony Style) and they always say,duh Sonic=Quality.
But I see so many people returning the VAIO laptops and they are so unnecessarily expensive and brittle.
Ethan @ Dec 9th 2008 10:56AM
Stand on a soap box and say the last half of that again so I can shout hear hear.
ThePhoenixReborn @ Dec 9th 2008 11:00AM
The thing is that sony never learns...
Nice analysis but bottom line is that while some people may force themselves to get smarter about certain things most others don't.
Hence why sony will continue to overcharge for their piece of shit products...
Wiinterfang @ Dec 9th 2008 11:01AM
I meant Sony ( I've being playing too much Sonic Unleashed >_>)
Wiinterfang @ Dec 9th 2008 10:38AM
Poor People, I'll be there was all kinds of hard working people then, to the old man that doesn't have insurance and have to keep working even in a old age to the new kid gamer that was just so happy to work for the company that makes the videogames and electronics that he loves so much.
it's heartbreaking =(.
Kspraydad @ Dec 9th 2008 10:58AM
How is it that you turn a story about SONY's electronics division into a fanboy rant about the PS3? You DO know that SONY is much more than PlayStation right? You DID read that this isn't the SCE division right? You DO know that SONY has been trimming staff since 2005 right? You do know that 8-16k in workers over a year and a half will be mainly contract and attrition right?
Trev @ Dec 9th 2008 10:59AM
Got banned again, I see. An intelligent person would have taken the hint by now.
Vidikron @ Dec 9th 2008 11:09AM
Your supidity is endless. It's amazing sometimes.
Noshino @ Dec 9th 2008 11:22AM
I don't really think many of us that claimed that the PS3 was successful, we just said that it is a superb machine, to say otherwise is rather stupid.
As for the second paragraph, you do know that we are undergoing through global recession right? meaning that all around the world jobs are being cut, its not only Sony, you have Ford, GM, even AT&T cutting their workforce. So, according to your reasoning, it was also their fault for picking the wrong company to work for? You are a fucking tool man
Fx.Dr @ Dec 9th 2008 11:23AM
Ah ha, true to your name, TheSociopathicDouche rises again!
Ariel @ Dec 9th 2008 11:23AM
This is not about one division, it's about a corporation being run into the ground by out of touch elites, CEOs in this case. They believe people will buy whatever they make at their overpriced MSRP and they for the most part are right. Only thing is things are changing economically due to all the pass the buck grab it while you can no shame greed and lack of pride that's been going on for too long. Fairness & solid craftsmanship is not a commodity that has been taken seriously or wanted as well.
In Sony's case their out of touch business polices & practices towards consumers have been catching up to them as it has for other corporations for a while now. But Sony being as blind as the next bloated Corporation too many chiefs and not enough Indians so to speak. One thing is sure, its harder to get back brand loyal customers that leave disappointed than acquiring new customers. Circuit City can tell you that. They were once big and mighty till upstart Best Buy came into the picture with better customer relations. Now CC has improved immensely and can't get buyers back even if BB has become the old CC. The only BB will learn CC's lesson is when a new upstart arrives on the scene, but in these times that looks grim.
Lekko @ Dec 9th 2008 4:19PM
It's under nine thousand!!
J @ Dec 9th 2008 10:34PM
I really think phoenix works for joystiq. His comments must bring extra hits to this website. He's pretty good at trolling. I don't think he actually gets banned, but lets us think he does so we don't start lashing out at joystiq. It's amazing how effortlessly he gets people so worked up. Well, i like joystiq, so i guess i support his trolling if it helps pay the bills.
BattyAdroit @ Dec 10th 2008 2:09AM
Why is it that the most rabid X-Box fanboys on these threads can never seem to tell the difference between 'they're', 'there', and 'their'?