Sony has revised its forecast for the last fiscal year and is expecting a $6.4 billion loss. This is the same loss as they registered in FY 2010-11, which was due to tax cuts, and they have to be profitable to get the tax assets back.
This is what analysts are suggesting. Earlier we reported that Sony was cutting 10,000 jobs or 6% of its workforce and it is a part of their restructuring process.
“To bring Sony back, Hirai needs to develop personnel and platforms that create competitive and innovative products, but that will be a formative task after a lot of talent left under early retirement plans,” said Tetsuru Ii, president of Commons Asset Management, who oversees about 2.7 billion yen worth of assets and does not hold a stake in Sony.
“The old Sony culture would only allow it to make things that were the best globally. Under that logic, does it make sense for Sony to continue its TV business, when it’s not even the market leader in Japan?
“In terms of management philosophy, (Hirai) will have to choose and focus the company’s business activities.”
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Thanks, Reuters.