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Topic: News: SONY to cut 10,000 jobs

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  1. #1
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    News: SONY to cut 10,000 jobs

    According to a report by the Washington Post, Sony says it will cut about 7% of its workforce as well as sell off about $1 billion of it's assets."

    I wonder what effect this will have on Vegas, Sound Forge and Acid? - and whether this is a sign of what is happening in the audio industry as a whole.

    Gary Garritan

  2. #2
    Senior Member Styxx's Avatar
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    Re: News: SONY to cut 10,000 jobs

    Wow. As a wise man used to say, "Ripples have no boundaries."
    Styxx

  3. #3

    Re: News: SONY to cut 10,000 jobs

    I reckon this will have little impact on the audio software world or those products. But we'll see. HP just announced huge layoffs too. Not good times..
    "Music is a manifestation of the human spirit similar to a language. If we do not want such things to remain dead treasures, we must do our utmost to make the greatest number of people understand their secrets" -- Zoltan Kodaly

  4. #4

    Re: News: SONY to cut 10,000 jobs

    Sony owns Sonic Foundry, so it's not out of the question that there may be some impact on the pro music/film/media industry. Since they're part of Sony Pictures (or they *were* at the time that I worked at Sony) I doubt that they'll want to rock that boat too much. Video games and films are the two main places where Sony made money over the past two years.
    Houston Haynes - Titan Line Music

  5. #5

    Lightbulb Re: News: SONY to cut 10,000 jobs

    Quote Originally Posted by dewdman42
    I reckon this will have little impact on the audio software world or those products.
    Are you kidding? Sony owns Sonic Foundry - ACID, Vegas, Sound Forge - need I say more?

    Be that as it may, SF is part of Sony Pictures - or at least Sony Corporate America - but I haven't worked there in a year, so I might be behind the times in terms of understanding their structure today. Anyway, since movies and games are two of the only places Sony has made money over the last two years - I doubt they'll rock that boat - unless they unload it as a "salable asset"...
    Houston Haynes - Titan Line Music

  6. #6

    Re: News: SONY to cut 10,000 jobs

    The top Sony execs hardly know that the Sonic Foundry line exists. The main focus of Sony is Consumer Electronics, which is their biggest sector by far, but has been losing money.

    Here are the numbers as of March 1st:

    [sector... revenue... income... margin]
    Electronics... 5,022B¥... (34.3B¥)... (0.7%)
    Games... 730B¥... 43.2B¥... 5.9%
    Music... 249B¥...8.8B¥... 3.5%
    Pictures... 734B¥... 63.9B¥... 8.7%
    Financial... 561B¥... 55.5B¥... 9.9%

    Sony Electronics is nearly seven times as big as Sony Pictures by revenue. Electronics is where the big changes will occur.

    Sony Pictures owns the Sonic Foundry products, but that's hidden behind Columbia/Tri-star/MGM. SF may take a minor hit, but should come out okay. One can argue that they hold a strategic position.

    The broadcast and production equipment side of Sony is within Electronics. They've got to be sweating bullets right now. Same with people working on anything outside of TVs.

    -JF

  7. #7

    Re: News: SONY to cut 10,000 jobs

    Quote Originally Posted by JonFairhurst
    The broadcast and production equipment side of Sony is within Electronics. They've got to be sweating bullets right now. Same with people working on anything outside of TVs.

    -JF
    Actually, I believe that Sonic Foundry (like Sony Pictures Digital) is now part of SCA (Sony Corporate America). They should be concerned as they're being painted with the same brush as the folks that were in charge of Sony Connect - which bombed. Hopefully they'll be involved in replacing the Connect client software and will be seen as the savior of that program. Between that and truly integrating with the Sony mp3 players it could be good news for them.

    While Sony broadcast and production should be sweating bullets, the TV people should be arranging their exit strategy. Sony will be closing all non-LCD facilities pronto (those that they have left).
    Houston Haynes - Titan Line Music

  8. #8

    Re: News: SONY to cut 10,000 jobs

    Quote Originally Posted by Houston Haynes
    While Sony broadcast and production should be sweating bullets, the TV people should be arranging their exit strategy. Sony will be closing all non-LCD facilities pronto (those that they have left).
    Yes, I should have written "LCD TVs" rather than "TVs" in my last sentence.

    What? Aren't all TVs LCD TVs?

    -JF
    (Disclaimer - I work for a division of Sharp, maker of Aquos LCD TVs.)


  9. #9

    Re: News: SONY to cut 10,000 jobs

    I remember an interesting article in The Times regarding Sony, the inventor of the Walkman, being out manuvered by Apple and its iPod.

    Seems Sony/Columbia Music was so intent on preventing mp3 sharing that it actually became a small battle within the company. The Electronics Division couldn't innovate without copyright protection issues haunting them at every turn. And so, Apple beat them out.

    This is one example where a company gets too big for its own good.

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