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blenderhead
12-11-2008, 11:54 AM
Sony has announced plans to cut 8,000 electronics jobs - 5% of the division - as well as shutting 10% of its manufacturing sites.

The company said the jobs would be cut by April 2010, but did not say in which countries the staff would go.


http://news.bbc.co.uk/2/hi/business/7772597.stm

http://www.edge-online.com/news/sony-cut-8000-jobs



Wonder if many of the casualties will be development staff in their game studios.

Dennik
12-11-2008, 01:57 PM
Well if they remove the brand name fee from all their products, they will sell better.

angel
12-11-2008, 03:22 PM
Trimming the fat as many companies are doing now...

TylerAZambori
12-11-2008, 03:56 PM
I wonder if those peopel thought of themselves as fat beforehand.

I know I wouldn't want to think of myself as just fat.

blenderhead
12-11-2008, 04:40 PM
Trimming the fat as many companies are doing now...

I would call EA and Nickelodeons 600 job cuts trimming the fat...8000 is a jinormous number!

anobrin
12-11-2008, 06:30 PM
The reality is that companies, like individuals ,have been sustaining themselves with phony imaginary money called "credit".
when your payroll account
is actually a revolving line of credit.and this bubble collapses
you realize you can no longer pay the people you've hired to do the work
you would like to have done.
hence the layoffs/cuts etc.

DuttyFoot
12-11-2008, 07:05 PM
i read that it was actually 16,000 jobs.

http://bloomberg.com/apps/news?pid=20601087&refer=home&sid=azvcrmFh8.nA

The cuts include 8,000 full-time employees, or 5 percent of the company’s electronics workforce, and another 8,000 part-time and seasonal workers, Sony said.

http://www.reuters.com/article/topNews/idUSTRE4B816720081210?feedType=RSS&feedName=topNews

Sony, the maker of Bravia flat TVs and PlayStation 3 videogame consoles, said on Tuesday it would slash 16,000 jobs, scale back investment and pull out of unprofitable businesses as the financial crisis ravages demand for its electronics products.

ThE_JacO
12-12-2008, 01:32 AM
I would call EA and Nickelodeons 600 job cuts trimming the fat...8000 is a jinormous number!
No it's not jinormous when you:
A) are sony and have six digits numbers of employees in each continent except Africa
B) Had just massively upsized and expanded on manufacturing because you were refining the process for a new hardware platform.

A lot of those numbers are from electronics (not entertainment), and are tied to the PS3 becoming cheaper and easier to produce. Some factories are increasing the units output considerably, and they don't need to maintain as many as they did before.
The wrapping of some OLED projects and the cheaper production of their BRAVIA line affect those numbers too.

For them it is "trimming the fat" after they lean down manufacturing processes.
It makes their stockholders happier, and keeps the cost of a section that during a crisis doesn't sell as much down (people stop upgrading their TV every year during recession :) )
I don't justify it, but it's hardly surprising or symptomatic of anything out of order happening during these financial times.

duke
12-12-2008, 12:00 PM
It's hard to tell in these times whether this is just business as usual, which I suspect this is, or as a result of the downturn.

richcz3
12-12-2008, 05:31 PM
It's pretty easy - as Anabran mentioned.
The sustenance that supported the world economic structure has been blighted.
We're experiencing a global recession.

Globaly - Personal wealth has been reduced
Defaults on Credit are unsustainable
Consumption of goods and services is in rapid decline
I don't consider what companies are doing as cutting fat. In this economic environment its survival of the leanest. Cutting operations to a bare minimum for fear that we are in a protracted downward cycle. 2009 won't be a year many will forget. Just wait as the one or two of the big three enter structured bankruptcy. US consumption of global goods will probably sink to a new historic low.

blenderhead
12-12-2008, 05:38 PM
No it's not jinormous when you:
A) are sony and have six digits numbers of employees in each continent except Africa
B) Had just massively upsized and expanded on manufacturing because you were refining the process for a new hardware platform.

A lot of those numbers are from electronics (not entertainment), and are tied to the PS3 becoming cheaper and easier to produce. Some factories are increasing the units output considerably, and they don't need to maintain as many as they did before.
The wrapping of some OLED projects and the cheaper production of their BRAVIA line affect those numbers too.

For them it is "trimming the fat" after they lean down manufacturing processes.
It makes their stockholders happier, and keeps the cost of a section that during a crisis doesn't sell as much down (people stop upgrading their TV every year during recession :) )
I don't justify it, but it's hardly surprising or symptomatic of anything out of order happening during these financial times.

Some people just always gotta be right :P

There's not a big evil corporation on the planet big enough to suggest that cutting 8,000 jobs of theirs is not a huge number. Even if it is globally. I thought EA's 600 was bad enough! :D

Artbot
12-12-2008, 05:50 PM
Most news reports say that most or all of these layoffs are in the consumer electronic division, so this isn't really CG news, per se. According to internet sources, Sony has around 160,000 employees worldwide. 8000 is a pretty small drop in the bucket, although those who got laid off probably don't see it that way. Hopefully the Online group (where I am) will be spared.

blenderhead
12-12-2008, 05:58 PM
Oh Damn I got my numbers wrong again sorry. It's actually 16,000 according to most sources. That's 10% of one of the biggest electronics giants in the world (if not THE biggest). Worst layoff statistics for one company I have ever heard of personally.

infinity82
12-12-2008, 07:26 PM
I feel bad for those people and their families.

Boone
12-12-2008, 08:11 PM
Sorry to hear so many people are being made redundant. If its anyone here then I wish you the very best in finding another job.

ThE_JacO
12-14-2008, 07:08 AM
Oh Damn I got my numbers wrong again sorry. It's actually 16,000 according to most sources.
Pretty much correct, it's not all at once though, it's a 2 years plan. The articles giving 8000 might also be correct, because that I think is the plan for the next two quarters.
Should also be noticed that they had hired over 4500 just to speed up the PS3 manufacturing process (leaks and rumors though, so I don't know if the number is accurate or not).

That's 10% of one of the biggest electronics giants in the world (if not THE biggest).
By far not the biggest :)
Have a look at matsushita and other first order electronics providers.


Worst layoff statistics for one company I have ever heard of personally.
You probably haven't heard much I guess, or simply don't read papers :)
It might seem pretty harsh, but it's 10% of one division after its upsize and during a crunch that will affect that division first and foremost.
There's been WAAAAAAAY worse than that, and some of those companies are still alive and breathing (some only barely though :p)

DuttyFoot
12-14-2008, 07:23 AM
You probably haven't heard much I guess, or simply don't read papers :)
It might seem pretty harsh, but it's 10% of one division after its upsize and during a crunch that will affect that division first and foremost.
There's been WAAAAAAAY worse than that, and some of those companies are still alive and breathing (some only barely though :p)

shoot, Bank of America is taking over merril lynch and expect a 35,000 staff layoff over the next 3 years. now thats huge

ThE_JacO
12-14-2008, 07:43 AM
IBM at some point laid off 61000, citigroup something like 52000, and both companies main target divisions were smaller than sony's current electronics division at that point, and IBM did that during a decade that was fairly healthy for everybody else in the industry (first half of the nineties).
Both companies are still alive.
Not that it legitimates Sony unloading all those people, but it definitely puts a 9% two years staff culling plan a bit more in perspective if people thought this was big :)

Mic_Ma
12-15-2008, 01:02 AM
As far as I know these specific cuts don't have an effect on games. They are related to their consumer products and temporary staff in some smaller cities. That's bad enough for those communities that rely on a big Sony nuts-and-bolts factory for their tax income but hardly touches the games companies who are mostly located in the big cities. Games are still doing well, I think. I hope.

blenderhead
12-15-2008, 09:19 AM
Where abouts do you work in Japan? Just interested because I plan to be spending a lot of time there/moving there next year. :)

Ed Bittner
12-15-2008, 05:27 PM
They gotta pay back all those BILLIONS they borrowed from Dubai, from the ass-kickin they were takin' from the PS3 as well as buying off film companies to support their Blue-Ray. Cats from Dubai have no sense of humor.
E.

Mic_Ma
12-16-2008, 12:56 AM
Where abouts do you work in Japan? Just interested because I plan to be spending a lot of time there/moving there next year. :)

In the sunny West. Enjoy your stay, there's lots to see, do, and eat.

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