Future of Sony looking kind of bleak

Sony’s new CEO, Kazuo Hirai, is preparing a turnaround strategy for the company, which he is to explain on Thursday of this week. Hirai just became Sony’s new CEO this month after being the Playstation executive.

Hirai said that he was prepared to take “painful steps” to revive the company, even though the reports are saying that the firm is making massive job cuts and looking into exiting businesses that are not making enough profit or are not central to the strategy that is in mind for the CEO.

The projection was estimated to be around 10,000 jobs cut or at least 6% of the entire workforce that Sony has.

The company blamed the record loss on tax charges related to its US business and this will be the company’s fourth year of losses.

Tetsuru Ii, the president of Commons Asset Management, told Reuters that the new Sony boss faces a tough job in revitalising the struggling firm.

“To bring Sony back, Hirai needs to develop personnel and platforms that create competitive and innovative products, but that will be a formative task after a lot of talent left under early retirement plans,” he said.

The company is expected to benefit this year from the new PlayStation Vita handheld gaming device, but could see its potential future improve even further by the rumoured launch of a new generation of PlayStation console.

Sony’s annual results are due on May 21. Shares in the firm closed down 3.5% ahead of the announcement today (April 10).

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