Sony to take 'painful steps' after it doubles its losses

Sony to take 'painful steps' after it doubles its losses
Sony - in the red

Sony has revealed the true extent of its problems in 2011, with the company announcing it is expecting to post a £4 billion ($6.4 billion) loss due to poor demand for its televisions.

2011 will be a year that Sony will want to forget. The tsunami in Japan, which lead to myriad supply issues, followed by a hack on the PlayStation Network, has meant that Sony has seen much of its money eaten up.

Couple this with a tax write-off in the US and a lack of demand for its TVs and there's little for the company to celebrate.

And this is reflected in the numbers: Sony Corps has told investors to expect a 520 billion yen net loss for the year to end-March 2012, double what was forecast for the company.

All change

Newly instated CEO Kaz Hirai has big plans to change Sony, with Japanese newspaper Nikkei reporting that he is looking to shed 10,000 people from the company – part of what he is calling "painful steps" to bringing Sony back to profitability.

Hirai is set to unveil his new plan for Sony April 12, with some investors believing that it's the TV arm of the company that will see the most changes.

Tetsuru Ii, president of Commons Asset Management, said: "The old Sony culture would only allow it to make things that were the best globally.

"Under that logic, does it make sense for Sony to continue its TV business, when it's not even the market leader in Japan?"

Sony has so far stuck to its guns when it comes to releasing active shutter panels, but there are many rumours that it could begin selling passive panels.

Its separation from Samsung in the panel market earlier this year has left the door open for different technologies to be used in its TVs.

Although Sony has told its investors to expect the worst, the full year-end results are due to come in from the company until May 21.

Via Reuters

Marc Chacksfield

Marc Chacksfield is the Editor In Chief, at DC Thomson. He started out life as a movie writer for numerous (now defunct) magazines and soon found himself online - editing a gaggle of gadget sites, including TechRadar, Digital Camera World and Tom's Guide UK. At Shortlist you'll find him mostly writing about movies and tech, so no change there then.