After finding out that initial projections were off by almost double with a loss of 6.4 billion dollars in fiscal 2011, newly minted Sony CEO Kaz Hirai is turning to what made him successful in the past: cuts and re-focusing.
In previous positions held by Hirai, he’s managed to take departments that weren’t doing so well and position them to become profitable. Some say he’s a big reason why the PlayStation brand was able to turn the ship around after its lukewarm launch.
With this “One Sony” plan, the company will now re-focus on the products and services that it feels give it the best chance to succeed. By now it isn’t a secret that Sony TV’s aren’t exactly “bringing it in” so to speak and because of that it seems that the Japanese manufacturer isn’t going to go to great lengths to force the issue either. They still have plans for TVs, it just won’t be taking the precedence that it once had.
Instead, Sony is going to rally around its key revenue generating businesses — gaming, mobile and imaging.
Unfortunately whenever you see this kind of company re-alignment taking place, cuts are usually needed and this time around it means 10,000 jobs (about 6% of Sony’s global workforce) will be eliminated as previously rumored.
Sony is hoping that by focusing on gaming, Sony Entertainment
and PlayStation Suite, the company will be able to generate revenue around ¥1 trillion ($12.4 billion) by fiscal year 2014. Let’s see if Hirai can work his magic one more time, as he’s already called this his “toughest challenge.”