Sony to shut Japan TV plant, cut 2,000 jobs-Nikkei
NEW YORK |
NEW YORK Jan 21 (Reuters) - Sony Corp (6758.T), which is expected to report its first annual loss in 14 years, plans to close one of its two Japanese TV factories and cut more than 2,000 full-time jobs, the Nikkei financial daily reported.
CEO Howard Stringer will announce the move at a news conference on Thursday, when he will also release a downgraded earnings forecast, the Nikkei said, without citing sources.
Sony outlined plans last month to curb investment, close five to six plants and cut a total of 16,000 regular and contract jobs globally to save $1.1 billion a year in costs.
Analysts have been expecting further cuts as the maker of Bravia LCD TVs, Cyber-shot digital cameras and PlayStation game consoles struggles with weak sales and a strong yen.
But talk of cutting jobs in Japan has met internal company resistance, the Financial Times reported this week.
Sony plans to eliminate about 3 percent of its domestic full-time staff, or more than 2,000 workers, mainly through to natural attrition, by the end of the financial year ending in March 2010, the Nikkei said.
The company, which generates about two-thirds of its revenue outside Japan, is likely to suffer an annual operating loss of about $1.1 billion in the year ending March 31, a person with knowledge of the matter told Reuters earlier this month.
Both of the company's TV plants in Japan are located in Aichi Prefecture, in Western Japan. (Reporting by Ted Kerr, editing by Matthew Lewis)
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