Rumors of drastic cost cutting at Sony abound, Sony says not so fast

Sony already announced some pretty significant layoffs and other cost-cutting measures last month, but it looks like the company could be set to take things even further, with the Times of London now reporting that some major factory and division closings could also be in the offing as early as next month. Any details beyond that are a bit light, it seems, but Sony is denying that any such plan exists, with a spokesperson saying simply that the company does "not plan to announce additional restructuring measures at this time." Not exactly a flat out denial, to be sure, and it certainly wouldn't be the first time that a company revised their layoff estimates this season.

[kjb434 @ Jan 5th 2009 5:45PM]

Good for Sony,

Maybe they'll become profitable by trimming the excesses. They probably finally learned that the Sony name no longer lets them sell products that are overpriced.

[greg @ Jan 5th 2009 7:04PM]

and that use proprietary plugs and generally just suck...

[Stewie Griffin @ Jan 5th 2009 7:23PM]

Layoffs seem a bit Draconian. Shouldn't they start by first flogging the PS3 marketing team?

[Lars @ Jan 5th 2009 7:56PM]

It's really unfortunate... they finally create a great product that I can really get behind (the PS3), and look where it gets them. That'll teach 'em to work with standards and create the most open gaming console in the history of the mass market.

And to the guys above me: Proprietary plugs? Overpriced products? I think you've got Sony confused with Apple.

[Poom @ Jan 5th 2009 9:45PM]

more like proprietary formats, not plugs.

[Troy Powers @ Jan 6th 2009 9:47AM]

Yeah, like I refuse to buy their digital cameras because they only support that memory stick duo thing and no SDHC. Dumb move.
Yes, and whoever is (supposed to be) marketting/advertising the PS3 needs to be greased up and tossed into a pit of sexually frustrated gorillas.

[Lars @ Jan 6th 2009 6:25PM]

True, they do have a tendency to force Memory Stick on users. But again, that's why I'm very pleased with the PS3, and I've never really been a fan of Sony's stuff before.

No proprietary memory cards, HDD is not proprietary (any ol' HDD can be swapped in), card readers for more than just mem stick, a wide array of media files are supported (and it even rips to MP3), cables are standardized (USB, HDMI, optical, mains), any USB or bluetooth headset is compatible, standard keyboards and mice are compatible, heck... a whole lot of devices are compatible... even printers (though printer drivers are limited, which is not Sony's fault).

[David Vogt @ Jan 5th 2009 5:46PM]

As long as they don't touch their DSLR division I don't care.

[Josh Ladella @ Jan 5th 2009 8:34PM]

Funny, I would have guessed you use a Nikon...

[StinkyPete @ Jan 5th 2009 5:48PM]

Sure they don't "plan to announce" layoffs. They can still plan the layoffs and people can lose jobs.

[STINK @ Jan 5th 2009 5:57PM]

They'll just round 'em up for a huge 'staff meeting' one day and when they get back, security guards will hand them a cardboard boxes of their stuff and escort them out.

That or line them up over the trap door to the alligator pit.

[Hife @ Jan 5th 2009 7:16PM]

They also said "we don't have any such plan." That bit was just left out of this article for some reason.

[Lars @ Jan 5th 2009 7:57PM]

Hife, it wouldn't be sensationalism with that part in there!

[Adam Schecter @ Jan 5th 2009 6:00PM]

Sony is not saying they are not going through with the massive restructuring they are only stating it is not happening tomorrow........From WIRED Magazine........" Sony, for its part, told Reuters that it does "not plan to announce additional restructuring measures at this time. This, as you might have gathered, does not at all refute the original report, which stated that the plan is to be announced next month."

[Carl @ Jan 5th 2009 6:10PM]

That picture is a fake! The women are not being surrounded by hundreds of horny teenagers!!

[arkweld @ Jan 5th 2009 6:25PM]

that's because it's a trap!

[Rob @ Jan 5th 2009 6:15PM]

Every time Sony denies a rumor, it turns out to be true. So, major layoffs at Sony. I bet you they'd trim the PSP division. Although there's talk about a PSP4000. I'm not very confident about its future.

[Arno @ Jan 5th 2009 6:25PM]

"Whoa, whoa, not so fast! Let us unload our stocks before you jump to any obvious conclusions from this totally legitimate report!"

[Levi @ Jan 5th 2009 6:26PM]

No comments from the Xbots yet?

[Anonymous @ Jan 5th 2009 6:44PM]

@ Arno...

Layoffs usually increase stock value.

[psp1ace @ Jan 5th 2009 6:51PM]

That sucks for Sony, I sure hope people aren't expecting any ps3 price-cuts, because Sony is raising prices to prevent loss. I sure hope ppl are comfortable with the 400 price because it's gonna stay that way for awhile.

[Lars @ Jan 5th 2009 8:01PM]

I'm fine with the price. For all the stuff packed in there, it's a fantastic value. One of the few consoles that I didn't grumble about wasting money on. I'm by no means a PS fanboy... I hated the PS1 and wasn't so fond of the PS2 either.

[adrian @ Jan 5th 2009 7:05PM]

I think Sony needs to trim the amount of consumer electronics products they sell.

Having so many different DVD Players, Recorders or MP3 players, Camera's for example in just one country alone can't be good if they don't all sell.

Just have two versions of a product, Budget, High end.

[Tony @ Jan 5th 2009 7:31PM]

There is rumour Sony intends to pull out of technology production. Whatever that means. What I do know is there was absolutely no reason for Sony to have nine (L, M, S, V, W, Z, XBR6, XBR7, & XBR8) models of LCD TVs in 2008. Hopefully in 2009 we will see an amalgamation of model lines resulting in less production, such as combining models L & M, S & V, and W & Z, and a greater focus on differentiating valued features. And maybe we will see this same logic applied across the entire spectrum of Sony products.

[Troy Powers @ Jan 6th 2009 9:50AM]

Hell, I paid $600 for mine and haven't looked back.
Killzone 2, God of War III, Uncharted 2, FTW!!!

[Tes @ Jan 7th 2009 6:54AM]

PS3