TOKYO – Sony Corp. announced Friday (Oct. 19) that it will reduce its domestic workforce by 2,000 by March, 2013, through an early retirement program and consolidation of its domestic manufacturing sites.
The latest restructuring measures will affect Sony's headquarters and electronics business operations in Japan.
The move is a part of the planned 10,000 staff cuts in its global workforce announced by Sony in April. Sony executives cited the global cutbacks would include the reduction of about 3,000 to 4,000 employees in Japan.
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Sony has already reduced its worfforce by 1,800 through the recent sale of its chemical products businesses to the Development Bank of Japan.
Friday's announcement includes the closure of Sony's manufacturing operation in Minokamo, Gifu prefecture. The company was producing interchangeable lenses for digital SLR cameras, lens blocks and mobile phones.
Of the 2,000 staff cuts, 1,000 employees are in support functions, including at Sony headquarters here.
The ailing Japanese consumer electronics company reported a net loss of 457 billion yen ($5.55 billion) for the fiscal year ended in March 2012 -- the fourth straight year of losses.
Sony said it is expecting no impact on its consolidated results forecast for the current fiscal year since the cuts were included in the 10,000-headcount reduction and 75 billion yen ($947 million) in restructuring charges Sony previously announced.
As a result of restructuring steps, Sony said it will be able to reduce its annual fixed costs of about 30 billion yen ($379 million) beginning with its next fiscal year that starts next April.