Sony Projects Annual Loss

TOKYO: Sony Corporation is forecasting its first full-year net loss in 14 years, of 150 billion yen ($1.7 billion), versus the previous year’s profit of 369.4 billion yen ($4.2 billion).

The company attributed the results to weakened sales of its electronics in the wake of the downturn, the appreciation of the yen, the decline in the Japanese stock market and restructuring charges following plans to cut about 8,000 full-time jobs and 8,000 temporary positions and shutter five or six of its plants.

Today’s announcement has surprised some analysts; just a few months ago, in October, Sony was still forecasting a full-year profit of 150 billion yen.

According to the Wall Street Journal, Sony’s chairman and CEO, Howard Stringer, is planning further layoffs, this time from the entertainment and video-game divisions, and intends to cut costs by an additional 150 billion yen.