CostCutting
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Sharp further cuts bonuses and salaries to stay above water, save $180 million
Sharp is already in full-on belt-tightening mode, and it's not just cutting jobs to keep its staffing costs in line with shrinking finances. The sinking tech giant is doubling the size of executives' salary cuts to 10 percent for a year-long period, all the while slashing planned 2013 bonuses to half of what they were in June. Sadly, everyday workers will have to take some of the same medicine. They're facing similar bonus cuts and will have to take a 7 percent drop in salary for the same year. Between these steps and cuts to extras like travel allowances, Sharp hopes to save ¥14 billion in the current fiscal year, or about $180 million -- a small amount next to the $2 billion in credit the company just recently obtained, but also a sign of just how much penny-pinching is involved in keeping the corporate ship afloat. Let's hope the sacrifice pays off.
Sony outsourcing some image sensor production to Fujitsu
Whoa. Sony sure didn't mention anything about this at its Photokina press conference last week, but then again, it's not the most glamorous announcement to make. According to Reuters, Sony is aiming to "outsource some production of image sensors used in digital cameras and mobile phones to Fujitsu," and as you'd expect, it's being done in a bid to shave costs and "cope with tough global competition." According to a Sony spokesperson, the company has been mulling this decision for awhile, but it's unclear if this will have any further impact in Sony's employment numbers. It's also unclear why "some" sensor production will remain internal -- we're guessing that newfangled Translucent Mirror technology may have convinced the firm to keep the DSLR lines a bit closer to the chest. It's bruited that Sony will begin subcontracting output to Fujitsu later in the year, and it could shift even more output if things go swimmingly. Funny enough, an eerily similar scenario hit Sony's LCD department back in early 2008. What's next? Subcontracting Walkman production to Apple?
Sports Illustrated: Cost-cutting has hindered iPad app
If you're a regular reader of the Sports Illustrated (SI) publication for the iPad, you may have noticed something unusual / different in the latest issue. The SI iPad edition is now only viewable in landscape mode, no longer supporting portrait mode as it did in previous issues. If you hold your iPad in landscape mode and then turn it to portrait mode the message, "This page is intended to be viewed in landscape mode. (There's nothing wrong with your iPad -- just turn it horizontally.)" appears. Guest editor of the SI iPad edition, Josh Quittner (Time Magazine), comments on this change in his personal blog. Quittner says that he believes the optimal viewing experience for photo-driven magazines, like SI, is in landscape mode. He also adds that by not editing in two formats (landscape and portrait) some innovative new features have been introduced, like "Super Loooooong View" - bringing a "reveal" effect to photos "akin to centerfold, or poster view." Quittner points out that another advantage of a single format issue is its reduced size. Coming in about 30% smaller than previous issues, SI can be downloaded in under a minute. But Quittner points out that download time isn't the only consideration, here. With other magazine publications reaching and even exceeding 500 megabytes, Quittner asks, "Who wants to store media that big on a 16 gigabyte device?" Finally, Quittner does admit that economy comes into play, too. He says that by implementing the landscape-only format their work load is reduced by at least a third. "Why not add more designers?" Quittner responds, "Well, if we were able to build a real business, with subscriptions that offered our iPad versions to readers at a reasonable price, that would be a no brainer. But we can't yet, so the best approach for us is to experiment with the format, marshal our (human) resources and start building products on other platforms that will allow us to scale up as our business grows." You may remember this video from way back in December of 2009 demonstrating Time Inc.'s vision for a tablet-based version of SI - prior to the announcement of the iPad. Back then, Time Inc. would have users download the SI app from the iTunes Store, but pay Time Inc. directly for further issues. Naturally, Apple didn't like this. Currently, Apple doesn't allow publishers to offer subscription based content on the iTunes store. But if rumors of the iNewsstand are to be believed, it's going to be pretty interesting to see how all this pans out. [Hat tip to AppleInsider]
Blockbuster to cut costs, buy fewer DVDs from studios
Maybe we're way off our rocker here, but it seems like every quarter Blockbuster is trying something new to get its business out of the dumpster. We've heard everything from potential mergers to boosted rental prices to yes / no on enhanced digital delivery, and now we're hearing that it'll be slashing costs by offering less of what you want more of. While the company saw same-store sales increase 4.4 percent in Q4 and 6.4 percent for the full-year 2008, it still managed to post a $435 million loss on an impairment charge for the most previous ending quarter. In order to shave costs, we're hearing that it'll be buying fewer DVDs from studios and lobbying for "better revenue-sharing participation from movie studios and video games publishers." In reality, though, we see all of this as just a band-aid for a stupendously large gash; it's going to take a serious overhaul for Blockbuster to survive the next decade, and buying a few less discs ain't it.[Via TomsPayde]
