Sony Mobile parent Sony Corporation has reported a JPY520 billion (US$6.4 billion) net loss for the financial year ending in March 2012, amidst reports that it plans to cut around 10,000 jobs across the business.
This is the fourth consecutive annual net loss and is considerably higher than the estimated loss of JPY220 billion Sony forecast in its previous outlook in February. The dramatic change is being attributed to an additional fourth quarter tax cost of JPY300 billion.
However, the company forecasts that its operating income – a JPY95 billion loss in the fiscal year just announced – will swing to a JPY180 billion profit in the next fiscal year, ending in March 2013.
The reported job cuts – which would amount to 6 percent of Sony’s global workforce – are believed to be in business divisions Sony no longer deems profitable or central to its strategy, reports BBC News.
A report in the Nikkei newspaper seen by CNET News said half of the job cuts would come from consolidating the company’s chemical and LCD businesses.
Sony Corporation agreed to buy out Ericsson from the Sony Ericsson handset joint venture for EUR1.05 billion in October 2011. The renamed Sony Mobile has been identified by Sony Corporation as one of its core electronics business areas.
It was announced last week that Sony Mobile CEO and president Bert Nordberg will be replaced by Sony Corporation's corporate executive officer and executive VP Kunimasa Suzuki from 16 May. Nordberg will become chairman of the Sony Mobile Communications board.