Sony shakes up leadership as record losses loom

 

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By Stuart Turton

Posted on 27 Feb 2009 at 10:48

Sony has announced a radical leadership shake-up as the company seeks to turn around its recent poor performance.

The new regime will see the company's chief executive, Howard Stringer, take on the additional post of company president.

The role will give him control of the struggling electronics division, reflecting Sony's increasing alarm at its inability to turn around the business that is being blamed for the majority of its forecast $2.9 billion loss.

After the announcement of the potential loss, Stringer hit out at his colleagues for not sharing his "sense of urgency" over the need to restructure. It now seems he has got his way.

The man he is replacing, Ryoji Chubachi, will become vice-chairman in charge of safety, quality and environmental issues. It is thought the new role will allow Stringer to more easily reshape the company, and axe jobs, as he sees fit.

The reorganisation will also see Sony's computer games, mobile products and PC departments merged into a new networked products and services group.

Elsewhere, a new consumer products group will bring together the home audio, video and other consumer electronics businesses as well as devices and components.

Sony has already announced plans to axe 16,000 jobs and close manufacturing plants. Along with new plans to offer employees early retirement and the slashing of executive salaries by up to 50%, Stringer claims the company will save 250 billion yen in its next fiscal year.