Electronics giant to report loss for the fourth consecutive year.
Sony said today that it will report a $6.4 billion (¥520 billion) annual let loss for financial year ending March 31 due to additional tax expenses and low demand. This will be the fourth consecutive year the Japanese manufacturer will report a loss.
“There have been several reasons for our poor results,” Chief Financial Officer Masaru Kato said at a news briefing in Tokyo today. “We are aiming for a rebound and for this we have made management changes.”
Sony plans to axe 10,000 jobs globally – a 6 percent reduction of its workforce – in order to recuperate losses. CEO Kazuo Hirai has said he is prepared to take “painful steps” if need be to revive the company and backout from businesses if they are longer profitable.
The company’s shares dropped 3% before the announcement was made.
Hirai is expected to outline the company’s strategy in a financial call this Thursday.