Sony to axe 10,000 jobs as salvation bid

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Sony president Kazuo Hirai (3rd L) and corporate executive officers Hiroshi Yoshioka (L), Masaru Kato (2nd L), Tadashi Saito (4th L), Shoji Nemoto (5th L) and Kunimasa Suzuki (R) pose during a photo session after a press briefing to announce plans to turn around the iconic firm at the company's headquarters in Tokyo on April 12, 2012. Sony said it would cut about 10,000 jobs in the fiscal year ended March as the struggling electronics and entertainment giant moves to stem massive losses. Photo - Kazuhiro Nogi/AFP/Getty Images

Japan’s Sony Corp is set to axe around 10,000 jobs, nearly 6% of its global workforce, Nikkei newspaper reported. The new CEO Kazuo Hirai is gearing to get back the electronics and entertainment to profit after four years in the red, Reuters added.

The downsizing of jobs and cost cutting measures are being taken by Japanese corporations like NEC Corp and Panasonic in order to sustain competition from companies like Apple and Samsung.

The downfall in business climate during last year has caused a combined loss of $17 billion for companies like Sony, Panasonic and Sharp.

“Under a new CEO, it’s easier to cut jobs or go in a new direction. One of the things I’d like to see is that they shift their resources to other areas outside TVs … If they stick to TVs, they may have to fight a war they may not be able to win,” the head of fund manager at Fukoku Capital said.

The job cuts will mainly affect chemical firms and small and medium LCD operations. However, it is not sure how much effect the overall job cuts would have in Japan and overseas, Nikkei added.

Last month, Sony announced it was selling its chemicals department that employs around 3,000 people. Earlier this month, the firm cut short the department to 2,000 workers and merged it with small LCD panel business of Toshiba Corp and Hitachi Ltd. The new firm has been named as Japan Display.

In 2008 December, Sony announced 16,000 job cuts after it failed to make profits as a result of the financial crisis. Reports suggest the Japanese firm suffered losses worth 220 billion yen ($2.7 billion) last year and has faced rough patch with its TV business.

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