In an effort to turn bolster its competitive edge, Sony CEO Howard Stringer--who was appointed in June--is restructuring the company to streamline its electronics, games and entertainment business areas. As part of the plan, Stringer is eliminating about 7 percent of the company's global workforce, closing 11 plants and stopping production in unprofitable electronics units. The company's forecast of $90 million in profits made a 180-degree turn to $90 million in losses due to restructuring costs, according to news reports.
Sony has continued to produce LCD and rear-projection TV sets after stopping production of the CRT. Sony will focus on high-definition technologies, devices related to HD products and devices, TV, video, digital imaging, audio and broadcast and production. Self-luminous flat panel Organic LED displays will be the company's focus for next-generation displays. The company will allocate resources on HD products, mobile products and the semiconductors/key component devices. Furthering its attention on digital cinema the company will continue developing production equipment and its 4K projector.
Sony expects to be profitable in television by the second half of fiscal year 2006.
Additionally, Sony will continue to develop products with the Blu-ray disc format--starting with the introduction of Playstation 3--and will launch a range of Blu-ray-related products and HD content throughout fiscal year 2006, the company reports.
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