Company confirms 10,000 job cuts.
CEO Kazuo Hirai has highlighted Sony’s strategic plans to increase profits and crawl back out of the four-year consecutive losses the company dug itself into.
Hirai said Sony will now focus on three businesses as its primary – digital imaging, gaming and mobile. For gaming, the company plans to increase the catalog of downloadable game titles and subscription services through PSN platform for PS3 and Vita.
With the three businesses, Sony aims to generate 70% of its total sales and 85% of its operating income for the entire electronics business for financial year 2014.
“Sony is positioning digital imaging, game and mobile as the three main focus areas of its electronics business and plans to concentrate investment and technology development resources in these areas,” he said.
“By growing these three businesses, Sony aims to generate approximately 70% of total sales and 85% of operating income for the entire electronics business from these categories by FY14.”
“The Company also aims to increase sales by enriching its catalog of downloadable game titles and subscription services available through the PSN platform, and also by expanding the lineup of PlayStation Suite compatible devices and content,” it said.
“Sony will target game business sales of one trillion yen and operating income margin of 8% by FY14.”
Hirai also highlighted plans for the company’s once reigning television business, hoping to “turn around” branding and profits by expanding the lineup into emerging global markets; and launching new businesses.
Sony will layoff approx. 10,000 employees globally, as reported earlier, in order to “realign the business portfolio and optimize resources”. The layoffs includes staff that are expected to be part of the company’s external business and subsidiaries.