Sony to Exit PC Market & Cut 5,000 Jobs to Compensate Huge Loss
By Sounak Mukhopadhyay | February 7, 2014 11:37 AM EST
Sony has decided to shut down its PC products as it is expected to slash 5,000 jobs. The highly acclaimed electronics company from Japan plans to reduce the overheads by £600m every year. The decision comes from the company in order to boost its primary business of mobiles, games and imaging.
The company apparently suffered huge losses in the TV sector. It has been a major setback for a company that generally competes neck to neck with its arch-rivals like Samsung and Apple in smartphone business. Sony has also declared that it is likely to suffer £600m loss in the 2013-2014 fiscal year that will end in March. Sony is reportedly expanding mobile computing and smartphone offerings as there has been a 24% sale in the third quarter.
Sony is expected to cut 2,000 jobs in Japan and 3,000 more overseas, which will be executed by March 2015. Sky News reported that the Vaio PC division was rumoured to be sold to Japan Industrial Partners investment fund while Sony is expected to retain 5% share in the fund. Fox News reported that Sony had admitted having a tentative deal for selling the JIP PC business. By August 2014, the television sector is going to be unloaded into an individual unit.
The company is apparently determined to sell its PC division as it believes that it is the best way of combating the drastic changes happening in the PC industry worldwide. The company, however, did not disclose the amount of money involved in the deal. If the deal really takes place, Sony will no longer plan, design or develop PC products even though the customer service will remain to be accessible to its customers.
The company also said that around 250/300 employees in the PC sector are expected to be recruited by the new company while the rest could be transferred somewhere else within the company.
To contact the editor, e-mail:
Most Popular Slideshows
- From Fat To Fit: Celebrities Who Were Overweight Before They Became The Beauties That They Are
- Kendall Jenner Could Be Next Victoria's Secret Angel [PHOTOS]
- Champions League Results: Barcelona Barely Escapes With A Win, Chelsea Fails To Hold On To The Lead [PHOTOS]
- Taylor Swift Named People's Best Dressed Stars Of 2014 [PHOTOS]
Join the Conversation
- Masayoshi Son Is Japan’s Richest Man As Softbank Shares Surge Ahead Of Alibaba IPO; More Millionaires Among Alibaba Employees On The Way
- Pizza Hut Australia Sorry for Victoria Branch’s ‘Free Small Animal’ Campaign
- Ex-Male Strippers For Rent At $125/Hour To Act As ManServants
- Alibaba Hikes IPO Price Range To $66-$68 From $60-$66
- iOS 8 Release Date Of Sept 17 Has Arrived: Update Begins At 10AM Pacific Time, Upgrade Your iDevices With iOS 7.1.2 First To Install iOS 8
- Google Nexus 6 Release Date on Q4 2014 Confirmed by T-Mobile Featuring Wi-Fi Calling
- Why Samsung Galaxy S5 Is Not The Best Smartphone To Purchase Now? If You Still Want To, Wait For A Month To Get It Cheap
- Apple iPad Air 2, iPad Mini 3 October Release Date Roundup: Freshly Leaked Protective Case Debuts Unique Vent Alongside Camera
- Canadian IS Jihadist Wants to ‘Play Soccer’ with Heads of US Decapitated Soldiers
- Australia Actively Rallying Support For International Coalition Against ISIS
- Warning to U.S. – ISIS Has Shot Down a Syrian Regime Fighter Jet