Sony Corporation (“Sony” or “the Company”) today announced additional steps it is taking to accelerate structural reforms of its headquarters and electronics business operations in Japan, including consolidating certain manufacturing operations and expediting measures to reduce its headcount.
Amidst a highly competitive business environment, Sony has been undertaking a series of measures to revitalize and grow its electronics business. As part of its mid-term strategic initiatives announced in April 2012, Sony identified resource optimization as one of the key initiatives for transforming its electronics business and Sony has since been progressively implementing various structural reform measures to optimize costs, streamline its overall organization, accelerate decision-making processes and establish firm foundations for sustainable future growth. In its prior corporate strategy announcement, Sony stated that through the combination of these structural reform measures and business portfolio realignment it expected to reduce headcount across the entire Sony Group, primarily in the electronics business, by approximately 10,000 in the fiscal year ending March 31, 2013 (“FY12”), including approximately 3,000 to 4,000 in Japan.
Among the measures undertaken to date are integration and consolidation of sales offices and resource optimization in sales and marketing organizations, primarily in Japan, the U.S. and Europe. Within Sony's headquarters and support operations, certain functions have been integrated and organizational structures have been streamlined, while the Company has conducted a thorough review of work content and work-flow process to ensure greater operational efficiency across these operations. Furthermore, on July 1, 2012, Sony established Sony Corporate Services (Japan) Corp., which is working to build a horizontal platform that incorporates support operations from across Sony's consolidated subsidiaries in Japan.
As the proportion of Sony's finished products being produced at its overseas manufacturing sites and by external ODM/OEM vendors continues to increase, Sony has also been taking measures, such as site consolidation, to better reflect the current scale of production, as well as steps to further enhance operational efficiency.
The new restructuring measures announced today, relating to Sony's headquarters and electronics business operations in Japan are as follows.