Sony joins job-cutting frenzy

CONSUMER ELECTRONICS GIANT Sony said it will axe 8,000 jobs, "in response to the sudden and rapid changes in the global economic environment."

The job cuts are part of a package of measures the outfit outlined this morning in an effort to cut costs and improve profitability.

The firm plans to halt production at two manufacturing sites, including its Dax Technology Centre in France and another it didn't name. A further four unnamed factories face the axe by March 31, 2010.

Sony said it intends to outsource a portion of its planned increase in manufacturing of CMOS image sensors for use in mobile phones and postpone plans to invest in production expansion at the Nitra plant LCD television plant in Slovakia.

Overall the firm will cut investment in its electronics business by approximately 30 per cent in the fiscal year ending March 31, 2010, compared to its mid-year plan.

The job cuts will affect around five per cent of the company's worldwide workforce and more are likely judging by the swingeing nature of its axe flinging.

The firm's full statement is here. µ