Sony to ax 10,000 jobs in turnaround bid: Nikkei - (via Reuters)

Discussion in 'Digital Cameras' started by Bruce, Apr 9, 2012.

  1. Bruce

    Bruce Guest

    <http://www.reuters.com/article/2012/04/09/us-sony-job-cuts-idUSBRE83803Y20120409>

    Sony to ax 10,000 jobs in turnaround bid: Nikkei


    (Reuters) - Japan's Sony Corp is cutting 10,000 jobs, about 6 percent
    of its global workforce, the Nikkei newspaper reported on Monday, as
    new CEO Kazuo Hirai looks to steer the electronics and entertainment
    giant back to profit after four years in the red.

    The job cuts would be the latest downsizing in Japan Inc where
    companies from cellphone maker NEC Corp to electronics firm Panasonic
    Corp are trimming costs in the face of a strong yen and competition
    from rivals like Apple and Samsung Electronics.

    TV makers in particular have been hit hard by the tough business
    climate as well as sharp price falls, with Sony, Panasonic and Sharp
    expecting to have lost a combined $17 billion in the fiscal year just
    ended.

    Investors will closely monitor a briefing on Thursday by Hirai, who
    formally took over this month as chief executive from Howard Stringer,
    for further clues on how Sony plans to revamp its business.

    <http://www.reuters.com/article/2012/04/09/us-sony-job-cuts-idUSBRE83803Y20120409>
     
    Bruce, Apr 9, 2012
    #1
    1. Advertisements

  2. Bruce

    Mxsmanic Guest

    Sounds like yet another CEO who is too stupid to know how to do anything but
    lay people off.

    You don't regain strength by cutting costs, you do it be increasing revenue.
    But increasing revenue requires brains, whereas cutting costs does not.

    What Sony really needs is to somehow bring back Mr. Morita from the grave.
     
    Mxsmanic, Apr 9, 2012
    #2
    1. Advertisements

  3. Bruce

    Alan Browne Guest

    Any businessman worth his salt conserves capital.

    Short term shortfalls are one thing, but a company with long term
    hemorrhaging is something else. The television business is brutal with
    few (if any) manufacturers making a profit more than thin gruel.
     
    Alan Browne, Apr 9, 2012
    #3
  4. Bruce

    Guest Guest

    both are important.
     
    Guest, Apr 9, 2012
    #4
  5. Bruce

    Mxsmanic Guest

    Any businessman wishing to survive builds capital.
     
    Mxsmanic, Apr 10, 2012
    #5
  6. Bruce

    Mxsmanic Guest

    Then why do CEOs depend so much on cost-cutting alone?
     
    Mxsmanic, Apr 10, 2012
    #6
  7. Bruce

    Guest Guest

    not all ceos are good at what they do.
     
    Guest, Apr 10, 2012
    #7
  8. Bruce

    Eric Stevens Guest

    But do they?

    Regards,

    Eric Stevens
     
    Eric Stevens, Apr 10, 2012
    #8
  9. Bruce

    Mxsmanic Guest

    From what I've seen, almost none of them are good at what they do.
    Nevertheless, the bad ones are paid just as much as the good ones, and seem to
    be no more likely to lose their jobs.
     
    Mxsmanic, Apr 10, 2012
    #9
  10. Bruce

    Mxsmanic Guest

    It's hard to find examples of CEOs using any other method.
     
    Mxsmanic, Apr 10, 2012
    #10
  11. Bruce

    Rich Guest

    Yes, I've got to admit, I don't know how they sell large TV's for the
    prices they do. Compare a 55" LED/Plasma TV to a DSLR that costs the
    same. Think of the difference in material costs, shipping, etc.
     
    Rich, Apr 10, 2012
    #11
  12. Bruce

    Rich Guest

    "I pay my workers high salaries so they can buy my cars."
    -Henry Ford
     
    Rich, Apr 10, 2012
    #12
  13. Bruce

    Trevor Guest

    That would be an investor, not a real businessman.

    Which is why a smart business develops new products and markets. Sony once
    was an innovator, (too long ago unfortunately) it seems they have now given
    up.

    Trevor.
     
    Trevor, Apr 10, 2012
    #13
  14. Bruce

    Mxsmanic Guest

    Their innovation largely ceased after their visionary founder, Akio Morita,
    died.

    The same thing happened to Microsoft after Bill Gates left, and to Disney
    after Walt died. And so on.

    Many successful corporations become that way because they had a particularly
    gifted founder or early CEO. Once that person is gone, the success goes with
    it, albeit not always overnight.
     
    Mxsmanic, Apr 10, 2012
    #14
  15. Bruce

    Me Guest

    Perhaps part of the reason for this is that a cartel got busted.
     
    Me, Apr 10, 2012
    #15
  16. It's hard to find in part because it's harder to see. You can cut many
    jobs in one day. It may take half a decade or longer, from inception to
    full operation, to put new capital into play. Guess which one makes the
    news.
     
    Bruce Guenter, Apr 10, 2012
    #16
  17. Bruce

    Alan Browne Guest

    In the case at hand, the bleed of existing capital needs to be stopped
    as a high priority.
     
    Alan Browne, Apr 10, 2012
    #17
  18. Bruce

    Alan Browne Guest

    "It's a good thing for uneducated men to read from books of quotations."
    - Churchill.
     
    Alan Browne, Apr 10, 2012
    #18
  19. Bruce

    Alan Browne Guest

    No. A real businessman uses capital (spends it) but recovers operating
    expenses from cashflow in such a way that sunk and liquid capital over
    time increases ... allowing development of new products, services,
    markets, acquisitions, borrowing, ...

    When cashflow goes negative quarter to quarter, capital erodes and
    destroys the business. Sony has been in this mode for far too long.
    They should have been king of MP3 in the Walkman tradition. Apple
    scooped that market. And they weren't first (or even 3rd) to try.

    In the TV and audio, S. Korea and China happened to them and they
    attempted to cling to home manufacturing. The rise of the yen is an
    additional burden on their margins.

    Their marketing people are disconnected. Their engineering people are
    extremely good - but perhaps they have far too much sway over features
    and product orientation.

    (I recall a product that would allow you to "drop" a vinyl record in it
    (any conceivable orientation) and it would cleverly catch it, turn it
    flat, align it with the spindle, drop it on and play it. What were they
    thinking? That people needed to be careless with their vinyl?).

    I see too many Sony products trying to embrace (forcibly sometimes) the
    customer with "do all" solutions. Jack-of-all-trades, Master of none -
    with entrapment to their standards. (hp is just as bad in a narrower
    context).
     
    Alan Browne, Apr 10, 2012
    #19
  20. Bruce

    Mxsmanic Guest

    MP3 postdates Mr. Morita.
    Sony isn't the only company trying to do that.
    I opened an HP computer not long ago to replace a disk. What I saw had nothing
    in common with the way HP computers looked inside 20 years ago. It was
    depressing. Of course, if HP still built its own computers and still built
    them the way it used to, the disk never would have needed replacement.
     
    Mxsmanic, Apr 11, 2012
    #20
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.