Sony to cut 20,000 jobs over three years

Sony said today it is to cut its workforce by about 20,000 over the next three years as part of a three-year plan aimed at improving…

Sony said today it is to cut its workforce by about 20,000 over the next three years as part of a three-year plan aimed at improving profitability.

Sony also announced a joint venture with South Korea's Samsung Electronics for liquid crystal display (LCD) panels. The venture will be capitalised at about $2 billion.

These measures are part of Sony's plan to reach an operating profit margin of 10 per cent by 2006/07. Price competition with more cost-efficient rivals, mounting inventory and an ageing product lineup pushed its margin down to 2.5 per cent in 2002/03.

The company aims to restore profitability at its mainstay electronics business and win over investors with details of a three-year, $2.8 billion restructuring.