Sony to Unveil Restructuring Details


Sony(SNE Quote – Cramer on SNE – Stock Picks) plans to unveil details of its restructuring plan Wednesday or Thursday, include where job cuts will be made, but tensions are rising within the electronics company over the plan aimed at cutting billions of yen of costs, the Financial Times reports.

Company managers have told the Financial Times that CEO Sir Howard Stringer's previously announced plans to cut 16,000 full-time and part-time jobs and restructure the company have met resistance from executives in its traditional manufacturing business.

The newspaper reports the dispute centers on whether products such as televisions have become commodities, in which case, the CEO believes, Sony should cut its production costs and rely more on sales of software built into its gadgets.

Sony has announced factory closures in the U.S. and France as it seeks to save 100 billion yen ($1.1 billion) in annual operating costs. However, the company is expected to make further cuts after it has set out details of those plans, the Financial Times reports.

Last week, Sony's joint venture with Ericsson TICKER TYPE="EQUITY" SYMBOL="ERIC" EXCHANGE="NYSE" PRIMARY="NO"/>, swung to a fourth-quarter loss of 187 million euros ($243 million).

Sony shares were up 2.5% to $22.06 in Wednesday morning trading.

Sony to Unveil Restructuring Details: Report | Personal Technology | Financial Articles & Investing News |

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