One of the side effects of Sony’s recent poor financial health is that jobs will inevitably go. Part of the strategy for getting the company on a more secure footing inevitably involves cutting jobs and it looks like 10,000 will go from locations right around the world.
In Wales alone, Sony employs around 2400 people in two manufacturing plants, one in Bridgend, one in Pencoed. It isn’t known whether anyone from these locations will lose their jobs, but given that they make TVs there, it’s highly likely that there will be job losses there.
The TV division has been losing money for eight years according to the BBC, so it is likely to be a target for Kaz Hirai as he tries to balance the books.
You can read the press release from Sony outlining their strategy here, but in short they intend to strengthen what it calls its core business – digital imaging, games consoles & mobile devices. It then wants to return the TV business to profitability by reducing the number of different models it sells and by improving the image and audio quality of what is left with the help of crystal LED and OLED.
Finally, there will be a push into emerging markets (India & Mexico); creating new business opportunities; realigning the business portfolio and optimising resources.
It sounds like a sensible plan and Kaz has form. He left the Playstation brand in a very strong position before being promoted to CEO, so lets hope this plan works.
Kaz, how about making PlayStation’s here in Wales instead?
Some encouraging news from WalesOnline. It sounds like our Pencoed factory will not be directly affected by the cuts.
“The Welsh Government continues to work closely with Sony on a number of different projects and our latest understanding from the company is that this recent announcement will not directly impact on the Pencoed facility which produces high value products that remain in significant demand,” said a Welsh Government spokeswoman.