Sony's new CE0 said it will not withdraw from the TV business will lay off staff

According to foreign media reports, according to foreign media reports, Kauzuo Hirai, president and CEO of Sony, who will take the new position on April 1 this year, said on Thursday that he will make a "hard and painful decision." "Reducing Sony's fourth consecutive year of losses by cutting spending on television and supply chains."

Hiroo Hirai said in Tokyo that day that “the pain can come from a variety of sources. We must make some difficult decisions, layoffs and cut fixed expenses in various areas.” Sony appointed Hirai Hirose as president and CEO earlier this month. Howard Stringer, former president and chief executive officer of the company, will serve as chairman of the company's board of directors. Sony said at the time that Kazuo Hirai will be renewed on April 1 this year and that Stringer will formally assume the chairmanship of the board of directors after the company’s annual shareholder meeting in June this year.

Hirai said that he will take television as his duty, because "the TV is the core of all entertainment experience." As a trend guide in the 1980s, Sony had expected that the company's TV business will lose money for the eighth consecutive year. The reason is that consumers are using Samsung Electronics and Apple’s devices to watch movies, listen to music and play games.

Hiroshi Hirai also stated that as the world’s third-largest TV maker, Sony will invest in new TV technologies and improve the product line of LCD TVs. Nomura Securities analyst Shiro Mikoshiba said, “If Sony’s market share in the TV continues to shrink, then the company will be forced to lay off staff. Staff salaries have now become a burden on Sony’s fixed expenses.”

new technology

During Stringer’s tenure as CEO of Sony, the company has made significant layoffs. According to data provided by Sony's official website, as of March 31, 2011, the total number of Sony's global employees was 168,200, a decrease of 6.8% from the same period of last year.

According to Bloomberg data, Sony, whose market value had reached 100 billion U.S. dollars, has a current market value of only 20 billion U.S. dollars. Sony shares rose 0.1% on the Tokyo Stock Exchange on Thursday to close at 1,544 yen. Although Sony's share price has risen 12% this year, the company's share price has fallen by 53% in 2011.

Sony predicted last week that the company’s net loss will reach 220 billion yen in the fiscal year ending March 31 this year due to the strong yen exchange rate and its withdrawal from the Samsung Electronics LCD panel joint venture. , exceeding the expected net loss of 90 billion yen in November last year. Sony expects revenue for the fiscal year to be 6.4 trillion yen, which is lower than the previous forecast of 6.4 trillion yen.

Hirai Kazuo said on Thursday, "It's hard to imagine that Sony wants to withdraw from the TV business. We must introduce new technologies to challenge the limits."

Cut spending

Sony had previously lowered its revenue forecast for cameras, video game consoles and PCs, and said that the revenue of the mobile phone business may not be as good as the market expectation. Hiroshi Hirai stated that as Japan’s largest exporter of consumer electronics products, Sony is seeking to cut spending on its domestic, US, and European operations. Sony's current cuts may affect the company's suppliers and OEM manufacturers. Previously, Moody's, Standard & Poor's and Fitch have downgraded Sony's credit rating.

Hirai said, “This will be a painful and difficult decision that we must make, but this is the right decision for the company’s business.” He said, “even among Japanese companies, Sony is still a very unique one. The company's CEO is not an easy job and I will do my best to rejuvenate Sony."

Hirai said that Sony will use its advantages in imaging, sensors and chip technology to develop in the field of medical devices. In addition, Sony will also transition from a company that offers unique products to a company that provides users with a unique experience.