Sony Plans Cost Cutting Strategies - More Layoffs

The economy has not gotten any break at all and more companies are cutting down on their overhead to stay above the water. Sony has announced it will be reducing its workforce by 16,000 workers within the next two years and to slow down their investment throttle at the same time. Sony operates 57 manufacturing plants around the world and as part of the cost cutting measure; it will also be suspending roughly ten percent of its plants. This move will save Sony about 100 billion Yen (US$1.1 billion) per year.

The ripple effect caused by US economic state, which resulted in Yen's higher value against US, and Euro puts many Japanese goods pricing higher than it used to be. Many companies that play in the global market are on the same boat as Sony; that includes major players such as Canon, Samsung, and etc. There aren't any sign of economy upturn yet and market confidence is not getting any better.