Wednesday, December 10, 2008

Global recession hits Japan’s Sony Corp.

Japan, the world’s second biggest economy, is struggling with rising unemployment as its economic recession deepens.

The nation’s export business continues to crumble against the rising Yen and analysts predict that the Japanese economy is set for its longest ever contraction. It had shrunk at an annual rate of 1.8% in the quarter, down from its previous estimate of 0.4%.

Japan’s Sony Corp., the maker of the Walkman portable player, PlayStation 3 game console, movie, video game and financial businesses, is slashing 8,000 jobs, or 5 per cent of its global work force despite shutting 10% of its manufacturing sites.

Aiming to cut costs by US$1.1 billion a year as a global downturn, Sony Corp, which has 185,000 employees worldwide will complete the layoffs by the end of March 2010.

Sony did not give a country breakdown for the job cuts but said they will come from its electronics business, which has 160,000 workers.

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