Sony's Tokyo Office Offers Employees Early Retirement to Cut Costs

posted on 2014-07-12 23:07 EDT by Lynzee Loveridge

Sony's Tokyo Office will offer employees early retirement packages to reduce staff and financial costs from August 1 to October 31. The company wants to reduce the headquarters' expenses by 30% by the next fiscal year. Sony is offering applications to employees aged over 40 with at least 10 years at the company and managers over 45 years old. Applying employees will retire by the end of November.

Overall, Sony plans to cut 1,500 jobs in Japan and 3,500 jobs overseas by March 2015. The company estimated a loss of US$1.27 billion for the 2013 fiscal year and projects a net loss of 50 billion yen (about US$500 million) for the current fiscal year. The company attributes the losses to leaving the computer industry and increased expenditures in its disc manufacturing operations outside of Japan.

Sony announced in April that it will sell all of its 9.52 million shares of Square Enix Holdings to SMBC Nikko Securities Inc. Sony expects to receive a profit of about 4.8 billion yen (about US$47 million) from the sale in the first quarter of its financial year (April to July).

Sony conducted a similar procedure in 2012 to reduce its workforce from 3,000 to 2,400.

Source: Variety

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