Sony Freezes Wages for a Year

March 18, 2009

TOKYO: Sony said today it would freeze salaries for a year starting in April, according to Nikkei. Bonuses are being reduced, and managers will see a pay cut of between 10 and 20 percent.

Sony also said today it would reduce its upcoming dividend. Instead of roughly 50 cents for the full fiscal year ending March 31, Sony will pay around 43 cents a share, the company said. The 4Q dividend has been slashed from around 20 cents to less than 13 cents. Shares of Sony rose around 2 percent on the news, from around $20.25 to $20.75.

The dividend has to be approved by the board in May for a June pay-out.

In early January, Sony said it expected to post its first operating loss in 14 years in the range of $2.9 billion. A loss posted in 1995 resulted from a one-time charge.

Last month, the company affected a reorg that placed Sir Howard Stringer in charge and restructured divisions to promote device interoperability. 

Want to read more stories like this?
Get our Free Newsletter Here!

Comments

Twitter