The turnaround expected under new CEO Kaz Hirai is faltering at Sony.
The company is selling off its Viaio computer business, sacking another 5000 employees, spinning off its TV business and forecasting a $1.1 billion annual loss.
It is trying to cut $250 million from the costs of its movie business Sony Pictures the former Columbia studio.
Last year Sony sacked 10,000 people. It has been sacking people for many years as its businesses mature and its executives are unable to develop new businesses.
Sony’s TVs have lost money for ten years in a row. Its TV market share is 7.5% and falling.
Sony expects sales of $76 billion this year but forecasts operating income will halve to $788 million and says the TV and PC re-structurings will cost it $880 million.
Moody’s and Fitch give Sony a junk credit rating and Standard & Poor’s is one slot above the lowest it can give.
Like many faltering Japanese companies, Sony has an American stalker – in this case the hedge fund Third Point which tries to tell Sony how to run itself.Tags: Sony