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Sony cuts 1000 US jobs, puts former Tokyo headquarters on sale

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Sony cuts 1000 US jobs, puts former Tokyo headquarters on sale

Although Sony hardly ever shows signs of weakness, its consumer electronics business isn't as glossy on the inside as it seems on the outside. According to a WSJ report, Sony is looking to sell its former former headquarters and surrounding buildings in central Tokyo. In addition, Sony plans to cut around 1000 work positions in the USA - a one fifth of the company's planned global staff reduction for 2014.

As unfortunate as it may seem - Sony is basically putting its birthplace for sale, and people will be losing their jobs, the company must be commended for fearlessly disposing of its unprofitable ventures. As the Japanese media said, there are "no sacred cows" here. Speaking of which, last year Sony parted ways with its US headquarters at 550 Madison Avenue, NYC - the famous Sony tower. It also sold off one of its main buildings in Tokyo, and both buildings went for $1.1 billion. In addition, this year the company sold its VAIO computer business to Japan Industrial Partners.

The "Gotenyama" complex in Tokyo's Shinigawa Ward became home to Sony's founders, Akio Morita and Masaru Ibuka, way back in 1947. Allegedly, it's there where they invented revolutionary pieces of technology, such as the transistor radio, the Walkman music player, and the Trinitron TV. However, Sony officials claim that the true birthplace of the company, where all the engineering history happened, is now a historic museum. And that's not up for sale.

Now that Sony has shed off the extra weight of its PC business and real estates, it will continue to focus predominantly on mobile technology, entertainment, and photography. The company expects a loss of $1.1 billion until March 2015, due to costs associated with maintaining its struggling TV and PC divisions.

source: The Wall Street Journal

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