Sony reveals restructuring plans to retaliate against massive losses

Sony has stated (via Reuters) that it expects losses from its entire corporation to equal around 260 billion yen for the fiscal year ending March 2009. According to, the games division is expected to post increased losses of 30 billion yen ($337 million), though there's no mention of what that's an increase from.. This is in stark contrast to last fiscal year, where Sony posted a profit of 369.4 billion yen. Of course, the economic downturn is predominantly blamed. As a result Sony has revealed accelerated restructuring plans for the remainder of the fiscal year.

According to Reuters Sony plans on cutting costs by 250 billion yen by the end of March by consolidating all TV design and production into a single factory, closing another. There will also be a 30% headcount reduction within the TV division. LCD TVs and batteries will be consolidated and managers and directors will receive a paycut. Overall it looks like the games division has remained largely unscathed. Hopefully the measures that are taken prove effective and Sony ends up posting a profit for FY 2009.

This article was originally published on Joystiq.