There are mass layoffs in the works as electronics giant and medical device industry newcomer Sony Corp. (TYO:6758) continues its company-wide overhaul.
The layoffs, which will amount to about 10,000 employees by the end of March 2013, are part of previously announced efforts to curb losses in the Sony’s struggling divisions, which include televisions and consumer electronics, and buttress its emerging businesses, which include medical equipment and imaging technology, Reuters reported.
Sony plans to cut about 2,000 from its headquarters and manufacturing facility in Gifu, Japan, another 1,000 at a European mobile phone venture and around 1,000 more from factories around the world, according to the news wire.
Earlier this month Sony picked up an 11% stake and became the largest shareholder in beleaguered endoscopy devices maker Olympus (TYO:7733) with a $642 million investment.
It was around this time last year that Sony initially entered the medical device space with the acquisition of diagnostics device maker Micronics Inc., which specialized in point-of-care devices for disease diagnoses, treatment monitoring and blood testing, as well as providing product development for 3rd parties.
The merger, made through Sony subsidiary Sony Corp. of America for an undisclosed amount, would help the company "accelerate its own research and development, particularly for Point of Care diagnostic equipment, as well as to accelerate the commercialization of these products," the electronics giant said at the time.
SNE shares were up 1% to $12.27 as of about noon today on the New York Stock Exchange, but the company’s stock close at a loss of 0.4% on the Tokyo stock exchange.
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