New CEO Kazuo Hirai has revealed Sony’s strategic plans to dig back out of several successive loss years, focussing on core businesses and making significant cuts.
“Sony is positioning digital imaging, game and mobile as the three main focus areas of its electronics business and plans to concentrate investment and technology development resources in these areas,” the company said in a press release.
“By growing these three businesses, Sony aims to generate approximately 70% of total sales and 85% of operating income for the entire electronics business from these categories by FY14.”
In the gaming stream, Sony highlighted the PlayStation 3, Vita and PlayStation Network as its core platforms, failing to mention the ageing but still viable PSP whatsoever, in conjunction with “accessories and peripherals”.
“The Company also aims to increase sales by enriching its catalog of downloadable game titles and subscription services available through the PSN platform, and also by expanding the lineup of PlayStation Suite compatible devices and content,” it said.
“Sony will target game business sales of one trillion yen and operating income margin of 8% by FY14.”
In addition to refocusing on three successful streams, Sony intends to ‘turn around’ its ailing TV line; expand into emerging global markets; and launch new businesses.
Finally, it intends to ‘realign the business portfolio and optimise resources’ – restructuring headquarters and subsidiaries.
“As a result of these measures, Sony estimates that the headcount across the entire Sony Group will be reduced by approximately 10,000 in FY12,” the company confirmed.
The total number of layoffs includes staff expected to end up part of external companies and subsidiaries as Sony realigns its corporate structure, and will “consider various measures to secure continuity of employment for employees at their new destinations”.
The restructuring is expected to cost ¥75 billion yen during FY12, but Sony is targeting sales of ¥6 trillion with an operating income margin of 5% in its electronics business, in FY14.