Sony Closing 20 Retail Stores, Cutting 1,000 Jobs In US

Posted: Feb 26 2014, 3:20pm CST | by , Updated: Feb 26 2014, 8:11pm CST, in News

Sony Closing 20 Retail Stores, Cutting 1,000 Jobs In US
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Sony is closing 20 of its 31 US retail stores according to the company, and laying off 1,000 workers.

The job cuts are part of a broader strategy to cut 5,000 jobs globally, spin off the struggling TV division, and get out of the PC business altogether.

“While these moves were extremely tough, they were absolutely necessary to position us in the best possible place for future growth,” said president and chief operating officer of Sony Electronics, Mike Fasulo in a statement.

In an age where big box retailers like Best Buy are having an increasingly difficult time surviving online competition, closing retail stores is a smart move, even if job cuts are always a tough decision.

While Sony’s recent launch of the PlayStation 4 has been enormously successful, catapulting the company to the #1 spot in the video game console business ahead of both Microsoft and Nintendo, the company as a whole continues to flounder.

Sony’s credit rating was downgraded to junk status recently, and the company’s impressive-looking new smartphone, the Xperia Z2, sits in the shadow of Samsung’s much more widely-hyped S5.

Some investors continue to urge the company to take even more drastic steps, including spinning off Sony’s entire entertainment wing, something Sony CEO Kaz Hirai refuses to do.

Whether the current strategy will be enough to return Sony to a more stable footing remains a big question mark.

The news follows layoffs at Sony’s Santa Monica game studio.

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Source: Forbes

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