Breaking News: CFOs increasingly involved in IT investment decisions

ZDNet / News / Business

New CEO pledges 'painful' steps to fix Sony

By , ZDNet Asia on February 10, 2012 

 

Summary

Kazuo Hirai vows to make tough decisions to trim costs in efforts to revive beleaguered Japanese electronics company, with focus on networking content and gadgets.

Events

Echelon 2012
June 11 and 12, 2012

University Cultural Centre, National University of Singapore

Startup Asia Jakarta 2012
June 7 and 8, 2012

12th Floor, Annex Building, Wisma Nusantara Complex, Jl. M.H. Thamrin No. 59 Jakarta 10350, Indonesia

MMA Forum Singapore
April 23-25, 2012

Grand Hyatt Singapore

Submit

Incoming Sony CEO Kazuo Hirai is looking to cut costs in the company's TV business and supply chain to turn around the ailing Japanese electronics manufacturer which is facing a fourth straight annual loss.

According to a Bloomberg report Friday, Hirai told reporters at his Tokyo headquarters that Sony would "have to make some hard, painful decisions." "We have to make some hard decisions on where there are redundancies and reduce the fixed costs in a variety of different areas."

Hirai, who takes over from Howard Stringer as president and CEO on Apr. 1, added that he planned to reshape the company by linking hardware and software through online networks, reported Reuters.

The news agency noted that this was the model he previously used to revive the fortunes of Sony's PlayStation computer entertainment unit.

"It's a bigger concept we can grow into a bigger space for Sony overall," said Hirai. He also revealed that Sony, currently the world's No. 3 TV maker, would invest in new technologies and improve its lineup of liquid-crystal-display sets.

According to Bloomberg calculations, Sony's TV division lost more than US$11 billion over eight fiscal years.

Japanese vendors are bracing themselves for a tough year. Panasonic this week forecast a loss of US$10 billion in 2012. Together with Sony and Sharp, the three companies are expected to lose US$17 billion this year. The vendors have been hit by various factors including steeper competition from foreign rivals, weak global demand, and strengthening yen.

Talkback

Add your opinion

In order to post a comment, you need to be registered. (Sign In or register below)

Post your comment

Resource Centre Useful content from our premier sponsors

Latest Stories

Experience trumps content in apps monetization

Malaysia offers manufacturing benefits over China

Value of big data analytics largely untapped

So.cl's approach 'cautious', to face hurdles in market

SingTel acquires HungryGoWhere for $9.4M

ZDNet Asia Live

#radio Radio Scotland by EnjoyIT 1.0 http://t.co/gaNHe2KU

SingTel (All) SingTel acquires HungryGoWhere for $9.4M ZDNet Asia News http://t.co/QuzQio2Z

Intranets need social to survive http://t.co/pdOHvgBP #intranet #socialintranet #intranet20

Fanboys on AV for Mac: "ludicrous" "a waste of time" "The Mac will protect me" "the most secure ever" "impenetrable" http://t.co/a1o2Sz7E

RT @ameliatmy: the hottest angel investment & venture capital event in #MALAYSIA! will u be there? http://t.co/ChSjkmzu #ABAF

Singapore Game Box in the ZDnet news!
http://t.co/UuTs0SqX http://t.co/YdPKmm39

#radio Radio Bolivia by EnjoyIT 1.0 http://t.co/fdlBPOeI

RT @zdnetasia: SingTel acquires HungryGoWhere for US$9.4 million. http://t.co/Qho1REVZ

Gartner: Mobile CRM gives better ROI than social - http://t.co/s5OfTAXK #CRM

RT @zdnetasia: S'pore sets up portal to grow games sector. http://t.co/In8gtj7L

#Malaysia: 20% yoy rise in overall #wages for both direct and non-direct labor. http://t.co/5T2e0LUU

RT @mikebuetow: #Malaysia: 20% yoy rise in overall #wages for both direct and non-direct labor. http://t.co/5T2e0LUU

@88tc88 RT @KevinZDNetAsia: User experience more important to app monetization than actual content http://t.co/ogbD5wyI… #li #dm12

Dubbed the first social #Olympics, this year's summer games have some of the strictest social rules for all involved http://t.co/4HlcqhW3

Value of big data analytics largely untapped - Zd Net http://t.co/ZuhPrCN4: Pushing cloud limits for d... http://t.co/VyOU0vHz #TheBIBlog

So much as we know , MTK6575 extremely integrated frequency1GHz ARM Cortex-A9 processor, the superiority of 3G / HSPA Modem, and help the...

16 hours ago by y15822137359 on 5 SaaS adoption speed bumps to avoid

I reckon your view: "CRM is strategy, not software", if a company replicating the approach uses in ERP implementation into CRM, what they...

1 day ago by wykoong on Gartner: Mobile CRM gives better ROI than social

This video will teach you about the Excel fill handle but also provide you with a workook to download... http://www.youtube.com/watch?v=...

2 days ago by TradeBrother on A quick fill handle trick for Microsoft Excel

waiting...

4 days ago by eapete on What should count in a company's market value?

Boy, you've opened a can of worms now.

Wait for the rants & raves.

4 days ago by eapete on What should count in a company's market value?

I was puzzling before this whether to replicate the success formula we executed for a financial institute, and come out with a standard s...

4 days ago by wykoong on Drop the egos, copy ideas, then innovate

Keep up with ZDNet Asia

Facebook Join our fan page

RSS Feeds Subscribe now

NewslettersNewsletters Subscribe today

Twitter Follow us