JAPAN NEWS: Sony revises its forecasts - again - and announces more cuts for TV division
More gloom from Sony, in the form of a further revision of its forecast results for the financial year ending this March. The company announced today that it now expects to lose around 150bn yen, or about £1.2bn, down £4.5bn from last year's profit of nearly 370bn yen.
It's now anticipating operating revenue to be even lower than it announced just three months ago, when it thought it was on track to make around £1.2bn profit.
That announcement caused major consternation, but the company has now reduced its revenue expectations by a further 14%, to way below 07-08 levels.
Sony has also announced a further range of cost-cutting measures, and it looks like its LCD TV division will be hit hard. As part of a plan to reduce staffing in its TV design operations by 30% over the next year, it's planning to:
- Close one of two TV design and manufacturing operations, consolidating all work at its Inazawa facility.
- Extend its use of outside manufacturing companies to serve emerging markets and the demand for entry-level models, as part of 'a far-reaching asset light strategy'.
- Standardise global hardware and software design and integrate R&D resources worldwide.
- Outsource some aspects of software development 'to off-shore vendors, for example in India'.
In December last year, the company announced a package expected to deliver annual cost savings over over 100bn yen (over £800m) by the end of next March. These new measures increase the savings to 250bn yen, or about £2bn.