Sony has warned investors that it's expecting its biggest loss ever. Sony foresees losses of $6.4 billion for the financial year ending March 31st. Ouch. This is double Sony's previously forecasted loss.
The company's head, Kaz Hirai, blames the upcoming losses partially on a 300 billion yen charge tied to deferred tax assets in the U.S.
Hirai promises to bring the company back around in the coming months or years. He'll be unveiling a turnaround plan tomorrow. Part of that effort is already known, though, and it involves people losing their jobs: Sony said it's going to lay off up to 10,000 people.
“We consider the current situation to be very serious," chief financial officer Masaru Kato said in a news conference. "We will take resolute measures to transform our business without protecting any sacred cows."
As you might expect, Sony stock has reacted by dropping. It's off 8 percent on the news. Now more then ever, Sony's announcement at E3 2012 will be important.
Source: Fox Business