Sony Cutting 10,000 Jobs to Save TV Division

A report came out of Tokyo yesterday stating that Sony intends to cut 10,000 jobs in an effort to turn around its TV business. Now, there are a couple things to note in order for this news to really have much context. First, Sony has been losing money in its television segment for 8 years (that's how long the division has technically been "in the red"). Secondly, 10,000 jobs represents a full 6 percent of Sony's workforce - worldwide. It's not uncommon for new CEOs to clean house - after all that's why they were hired, but incoming CEO and President Kazuo Hirai is really shaking things up. He outlined this new business strategy at a press conference where he tied the announcement to a commitment to bringing back Sony to profitability in the television market they once dominated (remember the reign of Trinitron TVs?).

The announcement comes at a good time given that Sony just doubled its annual net loss projection for the year to $6.4 billion. Sony has never had a loss that big before in its history, so it would make sense that if the problem is severe - the solution would also be pretty drastic. It's important to note that Hirai believes, and is designating, the 10,000 jobs as a "cost-cutting" measure. If Sony had 10,000 jobs floating out there in wasteful or half-baked projects, it's no wonder the company has lost money for 8 straight years. The new CEO and President believes that when the dust settles, Sony can return to profitability by 2014. Getting back to a place where they dominate the market, however, will be an entirely different challenge.

What do you think - will cutting 10,000 jobs save Sony? Or is it more likely that Sony's premium pricing strategy and the onslaught of Korean manufacturing has put it in an unrecoverable position? And how will the rumored Apple television hardware come into play? Let us know in the comments below!