Hit hard by the current and deep downturn, Sony (Tokyo) also intends to curtail or delay part of its investment plans, and downsize or withdraw from unprofitable or non-core businesses. It plans to reduce the total number of manufacturing sites by approximately 10 percent, from the current total of 57, by March 31, 2010.

All told, Sony is planning to reduce investment in the electronics business by approximately 30 percent in the fiscal year ending March 31, 2010, compared to its mid-term plan.

The cutbacks involve its CMOS image sensor, TV and other product areas. As part of the plan, Sony intends to cut IC investment expenditures this fiscal year by outsourcing a portion of its planned increase in the manufacturing of CMOS image sensors for use in mobile phones.

In addition, following the rapid demand slowdown in the television markets, Sony has decided to postpone recently considered plans to invest in production expansion at the Nitra plant in Slovakia.

And by the end of the current fiscal year, Sony plans to cease production at two overseas manufacturing sites, including Sony Dax Technology Center in France, which manufactures tape and other recording media.

As a result of these measures, by March 31, 2010, Sony plans to reduce headcount in the electronics business worldwide by approximately 8,000, out of approximately 160,000 as of September 30, 2008. At the same time, Sony plans to reduce headcount in its seasonal and temporary workforces.

Through these measures, Sony will aim to establish a corporate structure capable of delivering estimated total annual cost savings of more than 100 billion yen by the end of the fiscal year ending March 31, 2010.

Sony plans to outline the anticipated impact of these measures, including anticipated expenses related to their implementation, in Sony's updated forecast of financial results for the current fiscal year to be included in its third quarter earnings announcement, scheduled for January 2009.

By: DocMemory
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