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
Comments are Closed
Comments
Displaying 41–41 of 41
2123
vaajtswv
Sony didn't count on Vizio and the like to take a chunk of the HD tv market. They continue selling their tv's at higher prices, expecting their brand name to carry them. In this economy, people are settling for HD on cheap. Couple with the less than stellar VITA launch and spending money they don't have to buy out Sony Ericson, a $6.4 billion loss sounds about right.
I suspect Kaz announcement to be, "We're making more Spider Man movies, all of which will be directed and produced by Sam Raimi."
Displaying 41–41 of 41
2123