cost cutting
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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]
Sony freezes workers' salaries, others consider following suit
It's already laid off thousands of employees and undertaken a number of other drastic cost-cutting measures, but it looks like Sony isn't quite done with the belt tightening just yet, with the company now announcing that it'll be freezing workers' salaries for the financial year starting next month. As Reuters notes, Sony normally raises employee pay annually based on their role and performance, rather than seniority like many other Japanese companies, and this latest move follows some pay cuts to many of the very same affected workers, who've recently seen their wages drop by 10 to 20%. Not surprisingly, a number of other big Japanese technology companies including Toshiba, NEC and Hitachi are also said to be considering similar moves, but they don't seem to be quite ready to announce anything just yet.
Lenovo, Dell and TDK layoff thousands, bum out thousands more
No longer content to sit on the sideline while companies like Logitech and Creative get all the press, Lenovo, Dell and TDK are all "restructuring." And you know what that means. Lenovo: cutting 11 percent of its work force. Dell: cutting 1,900 jobs, closing its plant in Limerick. TDK: cutting 8,000 jobs and closing four plants. This might be a tad depressing, but don't lose heart, people! As Sony's Gary Shapiro pointed out at the company's keynote this morning, tech companies "don't seek bailout money, we seek opportunity." After all, the company knows a thing or two about "opportunity."Read: Lenovo Expects Quarterly Loss, Plans Job CutsRead: Dell to axe 1,900 jobsRead: Japan's TDK to cut 8,000 jobs, close four plantsRead: Layoff BlogUpdate: Shapiro is the President and CEO of the Consumer Electronics Association. Our bad.
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.
Vonage shakeup: CEO resigns, cost-cutting announced
In a series of events meant to stir things up at a company that many analysts have already written of as dead, Vonage CEO Michael Snyder has resigned on the same day that the pioneering VoIP provider announced a series of cost-cutting maneuvers, including operations consolidation, a reduction in marketing, and predictably, layoffs. Formerly president of ADT, Snyder led the company since February of last year, when he replaced founder and current Chairman of the Board Jeffrey Citron in that role -- the same man who will once again hold the CEO title while replacements are scouted. The shakeup seems to have buoyed investor confidence somewhat following the courtroom setbacks in that Verizon patent suit, with Vonage shares up as much as 13 cents in premarket trading; however, it's a rather hollow victory when you consider that the ~$3.00 stock went for as much as $17.88 this time last year. So while it's good to see Vonage making some proactive moves in the face of what can only be considered a deathwatch, there's only so much the company can do to affect its own fate, and at this point we could be just a ruling or two away from the end.[Photo courtesy of CNET]
GameTap now $9.95/month; GameTap TV announced
PC subscription gaming service GameTap has dropped its monthly fee from $14.95 to $9.95 and announced a GameTap TV expansion that will offer "a new broadband video streaming network" for games- and non-games-related programming.The GameTap TV feature will include separate channels dedicated to music videos, network game previews, GT TV-exclusive content, and "even an animation channel set to go live this spring that will feature an original series of animated shorts."We don't know where Space Ghost fits into all these broadband network plans, but we're sure that it can't be good. The cost-cutting measure by the TBS-owned venture are important in light of all the digital-download announcements made by the big console manufacturers recently, but it's hard to tell whether the $5 drop in monthly fees will greatly increase the number of current PC subscribers. Anyone gonna jump in on this?See also: What is GameTap? [Official page where the inset image was found] GameTap to offer previews, trailers GameTap: Turner's games-on-demand site is live
