Report: Sony freezing salaries

[Dohc-WP]

The Financial Times says electronics giant is stopping all non-managerial pay raises for first time in company history.

Considering Sony's expectations of posting a $2.9 billion operating loss for its current fiscal year (which ends March 31), it's no surprise that the electronics giant is looking to save money anywhere it can.

The price of the PS3 hasn't changed in a while, and the price of the people who make it won't be moving much either.

According to a Financial Times report today, the corporation's latest attempt to control costs is a wage freeze for the company's non-managerial Japanese staff. The venerable British finance daily reports that this is the first time in the company's history that it has instituted such salary constraints. Additionally, Sony plans to cut the average bonus payment for some of its staff by 35 percent.

Moves like these are increasingly being made by Japanese companies in an effort to avoid laying off full-time staff in Japan. As the Financial Times explains, "Most of these [Japanese] staff were given the implicit promise of a 'job for life' and rising wages."

Unfortunately, Sony broke the aforementioned promise to many in December, when it announced it was cutting 8,000 salaried positions worldwide, including in Japan. (A further 8,000 temporary positions were also eliminated.) That move came a year after the company announced that it was ceasing development and production of the Cell Processor that powers the PlayStation 3.

Ouch !

 

[PeterCH]

Ouch !

They need to dump Stringer and move up one of the Japanese salaried staff into his place, prolly for 1/10 th of the salary.

 

[Rosaudio]

I think its called a recession

 

[arf9999]

Actually the article is not correct. Unlike most Japanese companies, Sony has never offered "Job for life".

 

[Dohc-WP]

Actually the article is not correct. Unlike most Japanese companies, Sony has never offered "Job for life".

This was taken straight from gamespot (and they are usually spot on with their journalism and research)

 

[Rosaudio]

You cant be serious? Gamespot? OMG...

 

[Dohc-WP]

You cant be serious? Gamespot? OMG...

Gamespot is one of the most respected sites online, atleast it didnt come from the Dodgy sources U usually worship

 

[Rosaudio]

Respectable?? You dont know much about them do you?

 

[semiautomatix]

Respectable?? You dont know much about them do you?

Does it matter? The point is that Sony is in financial difficulty and they have stopped development of a product previously hailed as a saviour to Sony's financial woes.

 

[Rosaudio]

I think all major businesses are in finacial difficulty at the moment. Even Microsoft after laying off 7000 workers

 

[Info Guy 101]

Not getting a increase or losing your job hmmmm. I think Sony had to do something at least this way more people get to keep there jobs

 

[kds]

That move came a year after the company announced that it was ceasing development and production of the Cell Processor that powers the PlayStation 3.

I was under the impression that this was a joint venture between Toshiba and Sony - with the former doing most of the work. Can anyone substantiate this?

They need to dump Stringer and move up one of the Japanese salaried staff into his place, prolly for 1/10 th of the salary.

The Japs got Stringer in, in the first place because they had no faith in their current staff. I think Sony's corporate culture is a bit backward and it is going to take (much) more than Stringer to change that. They are out of touch, and need to get out the eighties mindset. This company ain't no Fuji Heavy Industries, hell for that matter it is not even a Nissan.

I think its called a recession

You are correct, the recession is to blame, at least on the surface. But the recession is going to separate the men from the boys so to speak - and Sony is definitely among the kindergarten.

If you sell rubbish products, over priced, overly complex and are arrogant enough to think the world will just fall over to buy them then you deserve your fate.

Another thing, if every few years you bet the farm on a game console maybe you should get another business model. Or at least get the console right...

 

[semiautomatix]

I was under the impression that this was a joint venture between Toshiba and Sony - with the former doing most of the work. Can anyone substantiate this?

The Japs got Stringer in, in the first place because they had no faith in their current staff. I think Sony's corporate culture is a bit backward and it is going to take (much) more than Stringer to change that. They are out of touch, and need to get out the eighties mindset. This company ain't no Fuji Heavy Industries, hell for that matter it is not even a Nissan.

You are correct, the recession is to blame, at least on the surface. But the recession is going to separate the men from the boys so to speak - and Sony is definitely among the kindergarten.

If you sell rubbish products, over priced, overly complex and are arrogant enough to think the world will just fall over to buy them then you deserve your fate.

Another thing, if every few years you bet the farm on a game console maybe you should get another business model. Or at least get the console right...

Sony was in financial trouble even before this recession started. They may have kept their head above water but this economic period has indeed separated the boys from the men, so to speak, and Sony was not in an enviable position to begin with, so some tough times ahead for the electronics giant.

Lets hope their decisions work out in the long run because I'd hate to see the company cut loose or discontinue too many of its products.