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Sony sheds Vaio PC business, turns TV unit into subsidiary

Tim Hornyak | Feb. 7, 2014
Sony will sell its struggling PC business to a Japanese investment firm, the company said Thursday, meaning the slick "Vaio" brand could all but disappear from markets outside Japan.

"They may be independent business entities, but the management is under the One Sony concept and spirit," Hirai added, referring to the slogan for his corporate restructuring vision implemented after he took the helm in April 2012. It calls for more cooperation among Sony's separate business units.

About 5,000 jobs will be cut as part of the reforms, including changes to manufacturing and other support functions. The company will shed some 1,500 positions in Japan and 3,500 overseas by the end of March 2015, and book additional restructuring expenses of ¥90 billion.

"My mission is to achieve a turnaround of the electronics business and to further grow it to contribute to the Sony group as a whole," Hirai said. "To fulfill that task is my mission."

Analyst Damian Thong, an analyst at Macquarie Securities, said: "The restructuring programme is more extensive than we had expected. The key for Sony now is to balance the need to get costs down, and the imperative to deliver stellar products that will ignite consumer interest.

 

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