Sony Electronics cutting 1,000 jobs by end of 2014 -- Doesn't affect gaming

Technology giant also confirms it will close 20 retail stores and sell its former headquarters in Tokyo.

by

Sony Electronics, the division of the technology giant that creates TVs and cameras, will lay off about one-third of its staff--or around 1,000 people--by the end of 2014. The company announced the news Wednesday, which is aimed at allowing the company to "maintain its competitiveness in an evolving consumer electronics market."

The layoffs are part of the 5,000 jobs worldwide Sony announced it would cut earlier this month. On top of the job cuts, Sony said it will close 20 Sony Stores in the United States, leaving only 11 left in operation across the country. A breakdown of affected stores is available on Sony's website.

"While these moves were extremely tough, they were absolutely necessary to position us in the best possible place for future growth," Sony Electronics president and COO Mike Fasulo said in a statement. "I am entirely confident in our ability to turn the business around, in achieving our preferred future, and continue building on our flawless commitment to customer loyalty through the complete entertainment experience only Sony can offer."

Meanwhile, The Wall Street Journal's AllThingsD reports that Sony will sell its former Japanese headquarters for an estimated $146 million. It would be the third major office building Sony has sold in the past year, following the $1.1 billion sale of the company's U.S. headquarters and one of its major outfits in Tokyo for another $1.2 billion in February 2013.

Sony Corporation is a massive company and its Electronics division is one of a half-dozen business units at the company. Others include Sony Mobile, Sony Pictures, and Sony Music, as well as gaming-focused divisions like Sony Computer Entertainment and Sony Online Entertainment. Importantly, today's news does not ostensibly affecting Sony's gaming initiatives, though the company did recently cut a number of jobs and cancel one game at God of War developer Sony Santa Monica.

Eddie Makuch is a news editor at GameSpot, and you can follow him on Twitter @EddieMakuch
Got a news tip or want to contact us directly? Email news@gamespot.com

Discussion

158 comments
rmiller365
rmiller365

I can totally see cutting the camera division because of everyone using cell phones now and all.

kovaras1984
kovaras1984

Its very sad to see people loosing jobs, but as if sony have no money to invest in anything what so ever will not effect the gamer. PSN still needs some serous investment to get to xbox live standards, and securing future exclusives takes money. Its very sad but sony have not made money for about a decade now loosing billions every quarter. And one of their tricks up there sleeve is a T.V you strap to your head. This has been going on for along time now and realistically sonys days could well be numbered. and if sony does manage to survive it will be a shadow of what it was, buried in debts with far less influence in all markets. People have been saying sony is going bankrupt for like 10 years because of mounting debts and continued losses. I doubt sony will be around in 10 years tbh. But i do hope they will be around

pddrumheller
pddrumheller

It's a shame Sony is having problems.  I like their products.  I own a Sony TV and will be getting PS4 this summer.  It's too bad that people are losing their jobs.  There are many reasons why this is happening but it can be put into 2 categories.  The big wigs that run the company and make all the money look at the bottom line and trim the fat.  The 2nd is a term called diversified income.  The fact that they have a lot of divisions and spread themselves thin it seems like.  I'm no expert in business but it's just a thought.  I'm 32 and as long as I've known, Sony makes good products but they're not cheap.  I just think the majority of people can't afford their TV's, laptops etc.  I think if they design more affordable products and slow down production of the high end stuff, I think they can turn around.  The PS4 is a better value than the Xbox, but all other Sony products struggle in their value for the dollar.  I think they will be ok.  Other companies have been in worse shape and turn around.     

bmart970
bmart970

"Doesn't effect gaming..." so this obviously belongs on a gaming website.


neonakaa
neonakaa

Nintendo has a small loss: OW MY GAWD NIN10DOH DIEINGS!!!1!!!1!!!


Sony jumps off a cliff while setting 20 stores on fire: Nothing to see here, move along.


chasloyal
chasloyal

@DIGN  What an utter fan boy melt you are. Doctoring quotes from the above article because you're in to licking Microsoft's bellend, do you think everyone in here is a complete dinlow?


I am no fan boy of anything, I own both PS3 and 360 as consoles, a Samsung TV, Arcam Solo hifi, Denon home cinema, an HP laptop, Blackberry mobiles because I can not be dealing with pony touchscreen when it comes to phones as I need physical buttons, ipod touch for my tunes and an android tablet.......so I clearly don't put all my eggs in one basket! That all said, a combination of Don Mattrick's trap to the world's gamers as his passing shot before leaving MS last year and the continued revelations of MS being very complicit in the NSA's snooping onslaught has guaranteed I will only buy a PS4 this generation.


It's terrible so many people are losing their jobs but alas it's the way of the world these days. The fact Sony are in such financial trouble will make me more likely to buy their products rather than less because they have always been there throughout the 41 years my life, the same can not be said of MS.


It's quite ironic I'm  having a pop at the rabid console fan boys of either platform because I'm someone who has been arrested in and deported from various countries on mainland Europe for following my club and country on the football front. In the late 80's and throughout the 90's I did enjoy getting in to bother, as a child of the 80's football hooliganism was fashionable and that's how it was. Yes it may well sound dumb to most but you still need a lot more about you to pursue that 'hobby' of loyalty than you do to run your mouth on behalf of multi national multi billion companies from the safety of being sat behind a keyboard!


It's about time that the many many divs in here realised that as gamers the best scenario for us is that both Xbone and PS4 succeed because competition is healthy. I'm not loving Sony because I'm a fan boy, I'd argue I'm not loving anyone, I merely dislike everything that has been coming out from/about Microsoft in recent times. Had it instead been Sony doing the same I'd be getting an Xbone now rather than a PS4........it's that simple, as a consumer I'm making an informed decision of conscience!

PlatinumPaladin
PlatinumPaladin

People, buildings, businesses; flipping heck Sony, you're only meant to be selling your products. So many drastic steps being taken by such a large corporation. Not sure what to make of it all.

I'm sorry to those affected though. So many people losing their jobs and an ever-increasing population, I've got to wonder where the tipping point is going to be.

insloanwetrust
insloanwetrust

No one buys a Sony TV, Phone, Tablet or Computer over the alternatives. I hope they do better though. This might not directly effect their gaming division but it still does as it's still Sony.

GrenadeLauncher
GrenadeLauncher

Xbots are usually too stupid to recognise that SCE and Sony Electronics are two different things.

obsequies
obsequies

great products. no money for them in a market where any cheap company can make hdtvs and computers. 

pellep
pellep

better for Sony to focus on games,mobile,music,movies as they make money on

deadpen
deadpen

Well if the gaming already sucks then of course 1000 job cuts wouldn't effect it. LOL

kovaras1984
kovaras1984

i agree xbox one is a much better console but i take no pleasure in gloating when so many people or losing there jobs. 10000 last year expect 5000 this year. Sony are just out of touch and quiet frankly the management have been arrogant dismissing all other competition. only a fool under estimates his competition. and sony did this on the phone market, t.v tablets with xbox 360. and now they are paying for it. there is no way they can compete with microsoft for long if they have no money to invest in psn and more exclusives

grognard66
grognard66

Pretty brutal.  Even more disheartening is that this is only the first 1K of the announced 5K layoffs they indicated in the previous financial report.

Gallowhand
Gallowhand

I'm always sad to see people lose their jobs, but if this is what Sony has to do to become more competitive and profitable, then I suppose it was inevitable.  They were slow to adapt to a changing electronics market, and still tried to charge a premium price for their products, relying on brand name loyalty.  Hopefully they've learned some hard lessons from all of this.

C_A_G_E
C_A_G_E

PC business is getting sold to JIPI

TV is forming it's own corporation much like Sony Entertainment. The cut is a move to streamline product line since they will now be forced to show profits or eat debt as a separate entity. 



For anyone interested in what is going on. 

Raeldor
Raeldor

Their gaming division is not in trouble, it's pretty much everything else that is.  This is good news for them though, as they need to start getting out of businesses that are no longer profitable.  Oh, and they need to stop making terrible movies like After Earth. :D

golden1elite
golden1elite

I hope this is not an indicator of where the industry is going


heartindarkness
heartindarkness

plz sony don't bite the dust i am always supporting you !!!

rasterror
rasterror

Sony should change their slogan from greatness awaits to layoffs await. It sucks for those that lost or are losing their jobs.

kovaras1984
kovaras1984

@bmart970 you cant really believe sony been on they edge of bankruptcy wont effect gamers

kovaras1984
kovaras1984

@neonakaa Its only been their HQ for 60 years. Desperate times for sony atm. things are always worse than people make out they are still trying to stay afloat and reassure consumers. but a move like this gives away how bad things are becoming for sony atm, they was knee deep in it for many years. now their waste deep in it after 10 odd years off loosing billions every year

kovaras1984
kovaras1984

@vackillers no 35 million is not enough when they have been loosing billions upon billion every year for many years. its a drop in the ocean and they only made they money because of selling there pc business, they sold there anime thing. and ps4 launch was a success, with out selling off parts of it self even with the ps4 launch they would have lost money again. i dunno how many billions in debt they are now i know they paid some back amking a slight profit but i would bet its 20 billion+ still, 35 million bottom line compared with 20 odd billion. Sony are doing what they can to survive tho its most probly all ready to late

blue_shift_91
blue_shift_91

@GrenadeLauncher  

retards are usually too stupid to realize that BOTH divisions have been in the toilet for the past decade.

insloanwetrust
insloanwetrust

@GrenadeLauncher  That's true but nevertheless it's the same company if they continue to make looses over and over again it will effect their gaming division. They already have made some cuts there.

tom2750
tom2750

@obsequies  this is why Sony should make some budget TV's as well they make good TV'S but most of them are like high end ones that cost thousands of dollars they have a few TV'S that have less features tho still very good for cheaper but they still aren't as cheap as some of the smaller companies my mostrecent TV i bought was a viali i hadn't even heard of that brand before but it was one of the cheaper TV's for what i wanted it was full HD and you could play movies and what not in its USB port and it supported the 2 file types i wanted (AVI and VOB) as all my movies are in these 2 file types now had they had a Sony TV that was about 32 inches was full HD and had a USB port that supported play back of AVI and VOB files and was around the same price or maybe even a little bit more expensive i would of bought a Sony TV as Sony makes great products that also usually are great quality and don't break very easily or fast but there wasn't so i wen't with the not very big named brand a lot of people don't care about getting a $3000-$5000 TV and just want a decent full HD TV for a few hundred dollars and that's usually were the smaller named brands come into play

Latiran
Latiran

@deadpen Instead of showing sympathy to the workers losing their jobs you come out with that?

C_A_G_E
C_A_G_E

@Raeldor  Their Movie and music division make money as well. 


Personal electronics have been their demise lately which should be their expertise. 

noladem504
noladem504

@golden1elite  no, not at all. Electronics are eveywhere, the industry is secure for years to come. Sony's business model just isnt profiting for whatever reason. 


bunchanumbers
bunchanumbers

@rasterror  I hope they get something for their years of service. Maybe a free Vaio laptop or something. 

triton1977
triton1977

@tom2750 @obsequiesThey already have substandard TV's and they still are more expensive than a better TV from another brand like Samsung. 

Our major electronic stores barely sells the brand any longer if compared to 10 years ago.

Their products have sucked ever since they failed to market the minidisc.

deadpen
deadpen

@Latiran @deadpen  We all make choices that impact our employment, if you want immunity to losing your job then you better make you own company. I've lost jobs cause GM wanted to "go a different route" so yes I came out with that.


Did you have sympathy for me when I lost my job in 2002 after 911's effects hit the trucking company? Did you have sympathy for me when Dana Corp filed bankruptcy in 2005 and my plant went to mexico? Or when GM needed a bailout in 2007 so companies that supplied products to them had to cut jobs? I didn't think so, but don't worry, out of this I've educated myself and 6 digits comes through the door each year.

kovaras1984
kovaras1984

@PlatinumPaladin @kovaras1984what ever lol, sony been loosing money for years and years. if there so great why has it all gone horribly wrong for them over past 10 years. all the sony quotes been used again them is sadly true. And it shows they thought they was above the competition. And that makes it even sadder that the average joe working for sony are paying with thier jobs, its not right or fair and i hope as many as possible fall back into work a.s.a.p

thinkcubed
thinkcubed

@PlatinumPaladin So are you if you are thinking PlayStation 4 is the better console.  In my book, they are completely two different system, yes they both play games but let's get into more detail. 

PlayStation 4 is a system that is meant for the hardcore gamer's only. With great specs and games to cover, it's the perfect gaming system for the hardcore gamers.

Xbox One is a system that is for hardcore gamer's, and a entertainment system for all ages with the ease of access using the Kinect voice commands and your hand as the controller. The Xbox One will assure you great games for the hardcore gamer's, and also entertainment for die hard sports fans and T.V. dwellers. 

thinkcubed
thinkcubed

@C_A_G_E It was just reported that Sony Pictures lost a lot of money after their release of After Earth.

Raeldor
Raeldor

@C_A_G_E @Raeldor  Yeah, but I think the days of Japanese companies being leaders in electronics is over.  Electronics are so disposable now.  People don't expect to keep their electronics for more than a couple of years anymore.  Japan's focus on quality is admirable, but may be a little outdated for the consumer market.

Warlord_Irochi
Warlord_Irochi

@deadpen"what makes these 1000 people any more special?" then "I PERSONALLY know 1400 people that have lost their jobs over the last 12 years or so because of money hungry CEO's"

And... you can still "lol" to this, right? Go tell made up stories to someone else.

You know 1400 people. Yeah, right...


But the best part is this:
"Did you have sympathy for me when I lost my job in 2002 after 911's effects hit the trucking company? Did you have sympathy for me when Dana Corp filed bankruptcy in 2005 and my plant went to mexico? Or when GM needed a bailout in 2007 so companies that supplied products to them had to cut jobs?"

You demand simpathy for you while, again, you offer a "lol" to people going through the same.
If you had really gone through all that and "educated" yourself, you would not that to make a joke out of this. So either you are lying and a fraud for teaching morals, a bad troll or just a horrible person. Pick your poinson.

Signed: Somebody who has ACTUALLY been through bankrupcies and job cuts.

deadpen
deadpen

@Praeceps86UK that is the point, he wouldn't, so what makes these 1000 people any more special? Because gamespot needed an article for their site? 


I PERSONALLY know 1400 people that have lost their jobs over the last 12 years or so because of money hungry CEO's/Owners that think if they pay people less in mexico the bottom line will be larger. That is why I do not care about people losing their jobs especially in other countries.


So this 1000 jobs is a drop in the bucket to the every day real world numbers.