Sony To Cut 5,000 Jobs, Split Off PC, TV Operations

Sony Corp, under pressure to shore up profitability in its electronics business, unveiled a restructuring plan on Thursday that will cut 5,000 jobs and trim 100 billion yen ($988 million) a year from fixed costs, while splitting off its loss-making PC and TV units. The PC division, as widely expected, will be sold to investment […]

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Sony Corp, under pressure to shore up profitability in its electronics business, unveiled a restructuring plan on Thursday that will cut 5,000 jobs and trim 100 billion yen ($988 million) a year from fixed costs, while splitting off its loss-making PC and TV units.

The PC division, as widely expected, will be sold to investment fund Japan Industrial Partners, which will set up a separate company to take over the operations. Sony will initially hold a 5 percent stake in that company.

Sony also said it will split its TV division off into a separate company by July 2014.

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The job cuts, which will include its TV and PC divisions, are to be implemented by March 2015, while the cost savings are to kick in by the following 2015/16 financial year.

REUTERS