Sony closes Japanese office, spurs on cost cutting

Sony closes Japanese office, spurs on cost cutting

Summary: In the move to start cutting jobs, an office with 8 percent of the firm's workforce is first on the list.

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TOPICS: Tech Industry
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Electronics giant Sony Corp. is planning to close down operations in one of its Tokyo-based offices, according to Reuters.

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The office building currently houses 4,800 staff, which equates to 8 percent of its Japanese workforce. The 31-storey building has been occupied by Sony since 1998, and its staff will be relocated.

The move -- part of restructuring efforts implemented by Chief Executive Kazuo Hirai, has been previously kept under wraps. The office closure is expected to be complete by September 2013.

Relocated staff will be housed in lower-cost facilities.

A spokesman told the publication that the shuffle would make restructuring efforts easier, cut costs and clear the path for the eventual dismissal of 4,000 employees in Japan. Global workforce cuts are expected to reach 10,000 by March.

The electronics and entertainment firm has already induced a voluntary early retirement program in a bid to shave employment figures, and recent reports suggest that the company wants to depart the optical disc drive business due to market trends and the expense of keeping up in research and development.

A factory in Giu, Japan, is also expected to close.

Sony will be announcing quarterly earnings on November 1.

Topic: Tech Industry

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  • Sony fading?

    The beginning of the send for Sony? Sony has lost nearly all of the wonderful cache it once had. But I'd rather see a vibrant Sony than a Samsung any day.
    pgentry53