Sony exits PC business with sale of Vaio

Desktops

by CBR Staff Writer| 07 February 2014

The move looks to save around $1bn per year from early 2015.

Sony has announced the sale of its loss making Vaio-brand PC unit as it plans to slash 5,000 jobs as part of its efforts to replenish its electronics business.

According to the Japanese electronics firm, the employee layoffs, at its TV and PC divisions, would save it about $1bn per year from early 2015, while the restructuring programme also involves splitting its TV unit into a separate subsidiary by July this year.

The latest move comes as Sony projects a net loss of $1.08bn for the financial year to 31 March 2014, revising its earlier projection of $290m profit.

Sony chief Kazuo Hirai was cited by the AFP as saying the latest moves were aimed at accelerating the revitalisation and growth of its electronics business.

"But the environment surrounding electronics will get more severe and it will be hard for us to achieve the goal we set for our PC and TV businesses," Hirai said.

"We are beginning to see the path to a turnaround in our TV business.

"TV remains an important category for Sony."

Sony's TV unit has been facing intese competition from rival brands alongside sluggish global demand, while a drop in TV prices has additionally affected the profitability of the division.

Upon the successful implementation of the scheme, Sony would mainly fucus on its smartphone and tablet line-up and end planning, design and development of PC products.

The Japanese electronics maker has earlier rejected the report about the potential establishment of a joint venture with China-based PC maker Lenovo.

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