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Sony Denies Reports Regarding Major Division Shutdowns


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312w ago - According to a story published by [Register or Login to view links], insider sources from Sony Corp. say the company is in for some "sacred cow-slaying" cost cuts.

This alleged drastic restructuring goes so far as to suggest that there will be closures of company factories and that major divisions will be shut down. This news comes roughly a month after it was revealed that Sony had plans to cut 8,000 jobs from its non-SCEA workforce.

However, as MCV (linked above) reports, Sony is already denying the supposed corporate restructuring. "We do not plan to announce additional restructuring measures at this time," said Sony spokesman Atsuo Omagari. "We don't have any such plan."

Whether true or not, Sony's corporate outlook is rather dire; analysts are saying that a radical restructuring is long overdue. They suggest that Sony needs to focus on content and software, and to give Sir Howard Stringer complete control of the business.

"The most important thing is that, to improve organizational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [Sir Howard] and unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo."



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