JobCuts
Latest
Sony announces PS3-related job cuts in US -- forgets to mention when or how many
It's not like we didn't see it coming or anything what with Sony's game division -- home of the PS3 -- recently posting a $1.91 billion loss for the year. But man, our hearts go out to those whose jobs at Sony Computer Entertainment are now on the chopping block. Thing is, Sony, while announcing plans to cut jobs in the US, is only turning the screw deeper by not providing any details. The move comes as Sony struggles to keep up with Nintendo which again snagged top-honors for the 4th consecutive month in the US market: 360,000 Wiis sold to the PS3's 82,000 while Microsoft sold 174,000 Xbox 360s. The gap between the Wii and PS3 sales in Japan is just as bad, if not worse. Fortunately for Sony, their Bravia LCD TVs, VAIO computers, and Handycams are all doing well enough to (mostly) offset the PS3 related losses. We'll have to wait and see if Sony's summer game catalog, bigger disks, and possible price cuts can reverse SCE's fortunes.
Motorola cuts another 4,000 jobs
Recognizing that its first round of 3,500 job cuts wasn't enough to bring it back into the black, Moto has announced -- as expected -- a second round of layoffs to the tune of 4,000 axed positions. Ultimately, the company expects to save $600 million from the new cuts after they've been bunched in with "prioritization of investments, continuing discretionary-spending controls, general and administrative expenses and site rationalization" (whether any of that verbage actually means anything, we don't know, but it certainly sounds frugal). For the record, the first 3,500 cuts are apparently on track to be completed by June 30, but with newly-announced "restructuring charges" totalling $300 million, it's anybody's guess whether these moves are ultimately going to make America's only top five manufacturer profitable again.
Lenovo laying off 1,400 employees, looking overseas
Tough news on the Lenovo front, as the "world's third ranking PC manufacturer" is looking to axe 1,400 of its US-based employees -- and fast. Reportedly, the firm has decided to lay off a good chunk of its American-based work force "within the next 30 to 60 days" as it turns around and creates around 750 new positions in Brazil, China, India and Slovakia. The company stressed that its return to profitability last year was greatly assisted by the laying off of upwards of 1,000 employees, and insinuates that the latest cost-cutting measures are just attempts to "make the organization more efficient by reducing expenses." The cuts also include a whopping 20-percent of the work force at Lenovo's Research Triangle Park (RTP) location and around five-percent overall, but should net some $100 million in savings for the new fiscal year. Sadly, it just seems to get more cutthroat every year in the corporate arena, regardless of accomplishments.[Via TWW]
