Sony to lay off 10,000 employees as it renews its focus on mobile

Daniel Bader

April 12, 2012 10:57am


Sony has issued a press release stating that due to a massive restructuring, they will be laying of 10,000 workers, or 6% of its current force, at its head offices, factories and subsidiary companies over the coming months. This is a direct result of dropping revenues in its major departments: digital imagining, gaming, mobile, and televisions.

The company has not been performing well financially for the past four years, culminating in an apparent  US$6.4 billion loss to the year ending March 2012. While much of that loss was due to a tax write-off, there is much to be glib about. That being said, the reorganization has refocused the company, and since its purchase of the remaining Sony Ericsson assets, mobile is now one of its three top-tier branches on which to focus.

Sony is to release a number of new devices this year, the first of which is the Xperia S coming on April 17th for $99.99. The press release makes it clear that mobile, including tablets, has the potential to be incredibly profitable. “Sony also plans to aggressively leverage its many technologies in areas such as digital imaging and game, its rich content assets including pictures, music and game, its “Sony Entertainment Network” network service platform, as well as the communications technology expertise and knowhow accumulated through its experience in the mobile phone industry, to launch new mobile products and establish new business models. Additionally, by integrating operations across its entire mobile product lineup, Sony aims to achieve further efficiencies and optimization. As a result of these measures, Sony will target sales of 1.8 trillion yen ($22 billion CAD) in FY14 from the mobile business, and significant profitability improvement.”

A focused Sony is one that is out to reclaim much of its former glory, and the mobile industry is set to benefit from this renewed vigor. They have already proven that they care about their Android users by setting up a bootloader unlocking program, a non-punitive warranty program for tweakers, and have reached out to the CyanogenMOD team to make it easier for custom software to run on its devices.

We can expect devices such as the Xperia U, Xperia P and Xperia Sola to succeed many of the company’s mid-range phones, and we hope that a follow-up to the Xperia S is good enough to take on the rest of the industry.

Source: Sony

  • TestMe

    SONY IS MY FAVOURITE!!! :)

  • Slype

    I think what would Sony is if they came up with a better naming convention for their phones/tablets.

    What are the Xperia U, Xperia P, Xperia Sola and Xperia S?
    Why does the P model come after S? How does that make sense? Letters are not exactly something that sticks out in my head as a catchy name for a product (even if the word Xperia preceeds it). They need something catchier and they need to build off that with numbers/roman numerals or something that identies it as a proper successor.

    • Henaway

      Well, maybe they’re taking their names from the competition, like the Galaxy S, the HTC One X, One S, etc. Don’t shoot one down over it when all the others are doing the same thing. Just sayin’.

  • Tv

    Their ovepriced LCD and LED TV’s were a scam. a few yrs back I bought a 42 ” LED TV from LG for 599.99 .. The exact same TV with identical specs from Sony was almost 1,100 i.e double the price. I compared the models and even saw them in the showroom , couldn’t tell the difference between the quality. My LG Tv is just working fine. No wonder Sony was losing billions in their TV division as no one was buying their overpriced TV’s ..companies like LG, Samsung etc are eating their lunch in the TV business. except for their PS3 most of their other electronic stuff is too expensive and not worth buying , the quality is not necessarily higher due to the the premium pricing

  • jaimz

    I dont know how it is in the states but if Sony wants to succeed in mobile in Canada they need to get on more networks. Rogers has had every Sony phone that has released here except for one. And the one that didn’t sucked and Telus got it. Where as Samsung rim, apple, HTC, LG are all carried by every carrier in Canada. Enough with your love affair with Rogers…..

  • Manbo

    Personally, I think if Sony focused on say 3 handsets, (entry, mid, and high end) made a quality product and provided it at a reasonable price with it being carrier unlocked @ Sony stores they might be ok. If they took the Apple approach and associated their 3 handsets with all carriers, it *might* be a winning combo.

    But that’s just my opinion.

  • Anonymous

    I like recent Sony devices however their “renewed effort” towards the mobile industry, might be “too little too late” if they don’t start making really good devices like apple or make their prices lower than apple.

    How your ->typical<- consumer buys a phone/tablet
    – asks friends what is good
    – borrows iPhone/iPad for a minute or two
    – Super easy to use and lots to do
    – no problems/RARELY and flawless build quality and finish
    – uses iTunes anyways
    – Buys iDevice

    GL(HF) sony!