Reorganization at Sony

TOKYO: Sony Corporation has announced a reorganization and a new management team as it copes with the challenges of the financial crisis, in a move that sees Howard Stringer adding president to his current remit of chairman and CEO.

The changes are intended to improve profitability and strengthen the company’s competitiveness, as well as accelerate the rollout of new products through the integration of the electronics and gaming segments. Set to take effect April 1, the restructure comes following the release of Sony’s Q3 results last month that showed a 94-percent plunge in profit to 10.4 billion yen ($115.9 million), with revenues down 24.6 percent to 2.1 trillion yen ($23.7 billion).

"Consumers want products that are networked, multi-functional and service-enhanced utilizing open technologies, and user experiences that are rich, shared and, increasingly, green,” said Stringer in announcing the changes. “This reorganization is designed to transform Sony into a more innovative, integrated and agile global company with its next generation of leadership firmly in place. The changes we’re announcing today will accelerate the transformation of the Company that began four years ago. They will now make it possible for all of Sony’s parts to work together to assume a position of worldwide leadership and, together, achieve great things.” 

Effective April 1, Stringer is also president of Sony Corp.—in addition to chairman and CEO—where he will work with his newly appointed electronics leadership team and directly oversee the electronics business to enable faster implementation of his strategies.

Meanwhile, the company has created two new business groups. The Networked Products & Services Group will include Sony Computer Entertainment; personal computers (VAIO); new mobile products, including the current WALKMAN lines; and Sony Media 
Software and Services, which develops a common service platform across Sony products. Kazuo Hirai will become executive VP of Sony Corporation and president of the Networked Products & Services Group. He will also continue in his current role as president and Group CEO of SCE. 

The New Consumer Products Group will include the current television, digital imaging, home audio and video businesses, led by Hiroshi Yoshioka as president (and executive deputy president of Sony.)