Sony to close down plants and axe 8,000 jobs

Sony set to can 8,000 jobs in 2009 and close down 10% of its manufacturing plants

Sony is set to can 8,000 electronics jobs and shut down 10 per cent of its manufacturing sites, due to Japan's shrinking economy.

Sony is set to make the cuts over the next 14 months through to April 2010, in an attempt to make cost savings of 100bn Yen ($1.1bn; £730m) by the end of the next financial year.

It has not yet been decided which countries will be the worst hit by Sony's cost-cutting measures.

Too little, too late?

"The number sounds big, but this staff reduction won't be enough," Katsuhiko Mori, a Fund Manager at Daiwa SB Investments, told the BBC.

"Sony doesn't have any core businesses that generate stable profits - the next thing we want to see is what is going to be the business that will drive the company."

It will cut its investment in electronic operations by 30 per cent and shut down about 10 per cent of its 57 production facilities.