TOKYO: Sony Company has decided to cut another 2,100 jobs at its mobile phone business by March 2016, in order to return the activities to profit. The restructuring is expected to cost JPY 30 billion and lead to JPY 90 billion in cost savings by the fiscal year ending March 2017. In the past year, the company already reduced headcount by 15 percent at the mobile division.
For the current year to 31 March, Sony forecast an operating loss of JPY 215 billion on sales of JPY 1.32 trillion for the mobile division. The downgrade from its previous outlook reflects lower smartphone unit sales, mainly in Asia, and negative effects on costs from the appreciation in the dollar. It will also take a JPY 176 billion impairment charge on the activities. In the coming years, sales are expected to shrink to JPY 900 billion to JPY 1.1 trillion in the year to March 2018 and the operating margin improve to a positive 3-5 percent.
In the latest quarter to 31 December, Sony reported sales up 28.7 percent to JPY 429.0 billion, and operating profit improved to JPY 9.3 billion from JPY 6.3 billion a year ago. The results were helped by exchange rate effects as well as an increase in smartphone sales to 11.9 million units from 10.7 million in the year-earlier period. For the full year to March, Sony downgraded its forecast for unit sales to 39.2 million, flat compared to the previous year, from an estimate of 41.0 million in October.
For the rest of the group, Sony raised its outlook for the full year thanks to the positive currency effects. Revenues are now estimated at JPY 8.0 trillion, compared to the outlook in October of JPY 7.8 trillion, operating profit is forecast at JPY 20 billion (versus a loss of JPY 5 billion in October), and the net loss will be a smaller JPY 170 billion. Growth in Playstation, camera and imaging sensor sales will be offset by weakness in other divisions and the costs of exiting the PC business
