Games studios 'spared' in Sony mass-layoff plan

Games studios 'spared' in Sony mass-layoff plan

By Rob Crossley

April 20th 2012 at 3:46PM

Chemicals, TV, sales and marketing to bear the brunt of global cut-backs

Sony will not bury the axe into its games division as the company prepares to slash some 10,000 jobs from its global entertainment empire, Develop understands.

Information of the company’s restructuring operation suggests that the television, marketing and chemicals business will bear the brunt of the cut-backs.

Sony declined to comment when approached by Develop.

Targeting a six per cent reduction of its workforce (about 10,000 employees), it is believed that Sony will remove about 5,000 workers through the sale of its chemicals and LCD business.

New CEO Kaz Hirai, who has a mandate to slash operating expenses by a third within twelve months, said that Sony’s focus will be on three divisions: Digital imaging, phones and games.

But within these sectors, certain jobs (particularly outside of development) are still expected to be vulnerable.

A new report published today on Brand Republic claims that Sony Europe will cut about 1,000 staff – predominantly in marketing and sales roles if their jobs are connected to weaker divisions of the business, such as TV, or if their role is duplicated elsewhere.

According to Brand Republic: “A Sony spokesperson has confirmed the official 90-day consultation is likely to heavily impact on sales and marketing-related roles as Sony seeks to cut-out ‘duplication’ as part of its new plan”.

Sony Computer Entertainment would not comment on the matter of downsizing its Europe marketing and sales arm.

The company is battling, and in some cases outright denying, rumours of layoffs at certain facilities such as a broadcast cameras factory in Pencoed.

Sony’s financial turmoil was laid bare when executives projected it would make a £4 billion loss for the financial year ending March 31st, a staggering cost that marks the company’s fourth year of red ink.