Sony hires firm to cut $100 million from Entertainment Division budget – report

Tuesday, 19 November 2013 20:59 GMT By Stephany Nunneley

Sony has hired Bain & Company global management consulting firm to find ways to cut $100 million in costs in order to return to profit, per a Bloomberg report.

The report states the cuts will result in job losses across the firm’s entertainment division, which includes Sony Pictures and its games sector a person close to the matter told Bloomberg.

Some of Sony’s investors, most notably Daniel Loeb of Third Point, havecalled for Sony’s to break up its entertainment empire, so that it can focus its efforts on maximising profitability for its core electronics business.

The firm’s CEO Kazuo Hirai will be hosting a conference on November 21 to discuss the entertainment division. Hirai has said in previous months he wants Sony divisions unified going forward, instead of splitting them up as suggested by shareholder and Third Point LLC boss Daniel Loeb who hand delivered a letter suggesting a split to Hirai.

In his letter to Hirai, Loeb proposed the firm sell 15-20% of Sony Entertainment to shareholders which would allow the firm to funding to help its electronics division.

Last we hear, Sony was reportedly in talks with Morgan Stanley and Citigroup regarding splitting  the entertainment and electronics divisions, and even the possible sale of the entertainment unit.

Another report stated the board of directors had started discussing the idea, with Sony CEO Kaz Hirai reportedly saying the board would “come to a decision that represents Sony’s stance.”

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