Sony cutting plants, 8,000 jobs by April 2010

Sony cutting plants, 8,000 jobs by April 2010

As we've spun wildly, frolicking in the shower of new, exciting games being released, there has, apparently, been a little financial trouble in ... well, in all of existence. We've now emerged from our game coma long enough to survey the damage which is, again, hitting close to home for us gamers: BBC is reporting that Sony will cut 5% of their electronics division -- 8,000 jobs -- and close a tenth of its manufacturing sites.

Two things: 1. We don't know how many of the cuts will be directly related to the PS3 and PSP, if any. 2. This makes perfect sense in an economic climate like this, with decreased demand guaranteed by the financial meltdown, Sony will want to make fewer products. We are, however, troubled by a quote from Katsuhiko Mori, a hedge fund manager who said "The number sounds big, but this staff reduction won't be enough." Here's hoping he's wrong.

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I'm still working 50+ hours a week. My bills are paid. The house next door looks like it's finally being sold. My point? I am starting to believe that this "meltdown" is only hitting the loan market, and oil markets. In other words, the people who spent the last decade raping and pillaging from the average Joe is now paying the price. It's unfortunate that they are closest to the "woe-is-me" microphone that is the media.

Sony has flooded the market with their products. Maybe too many are still on the shelves in their warehouses. Cutting jobs because they don't need to manufacture due to supply being enough to meet the needs of the demand is, well, smart. It keeps the company from purging money to pay fro idle hands. Katsuhiko Mori is off his rocker in his statement. And I say this because I am sick of this doomsday talk about the economy being in the toilet. Slow times does not mean disastrous times.

My brain hurts. And because of this I shall end my rant.

Fin.

Um... I'm the only person in this house of 4 who still has a job. I work at a burger joint. My mother got let go from her job and my dad go laid off. Fortunately my grandma said that she's going to pay for my next semester of classes for me. I can feel for those people. :-\

Jobs are everywhere. Just gotta find 'em. I know my job hires no matter what. The health care profession is always hiring.

They took our jerbs?

UPS is hiring, especially now during the holdiay season, and they have great benefits.

The problem is that unless you plan on working two shifts (like 10-12 hours a day), don't expect more then $150 a week.

Firstly, I agree with Dart. It's just smart for Sony to downsize. They don't have that 60% market share anymore.

Dart said:

I'm still working 50+ hours a week. My bills are paid. The house next door looks like it's finally being sold. My point? I am starting to believe that this "meltdown" is only hitting the loan market, and oil markets. In other words, the people who spent the last decade raping and pillaging from the average Joe is now paying the price. It's unfortunate that they are closest to the "woe-is-me" microphone that is the media.

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Unemployment rates have jumped up 3% and if GM or Ford goes bankrupt, it'll be pushing 10% in no time. Things may not have gotten tougher for you specifically, but statistics don't lie, and the statistics are saying that times are getting tougher, and will be for a while longer.

And for the record, banks rapping and pillaging the average Joe? That is more than a bit extreme, considering they did little more than give average Joe a loan, one Joe couldn't pay. Neither of them managed to realize how irresponsible said loan was so I'd say that the average Joe is as much to blame as the banks.

Homicidal Cherry53 said:

Unemployment rates have jumped up 3% and if GM or Ford goes bankrupt, it'll be pushing 10% in no time. Things may not have gotten tougher for you specifically, but statistics don't lie, and the statistics are saying that times are getting tougher, and will be for a while longer.

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Japanese auto makers are subsidized by their own governments. They pay little on taxes in their home markets. Why? Because their home governments realize that if they fold, it would suck the economy into a hole.

Our governments tax the hell out of the auto makers. They make them pay a "military tax." They make them pay for a slew of other things as well. The U.S government is not the auto makers' friend. The politicians here can't understand that government is not intended to be a money machine.

I'm not really buying the concept that the auto makers are in a financial bind. Chrysler, yes. They have been on a downward spiral for a while. GM, if they cut jobs from the top, should be able to rebound quickly, assuming they are in a bind. A white collar job that has little impact can free up funds to pay for at least three factory workers (Depending on how high up the position is). Ford is full of people who can adjust quickly to forecast changes. They have done it before.

Darn foreigner cars! It's just like that Micheal Keaton movie from the 80's!

Dart said:

Our governments tax the hell out of the auto makers. They make them pay a "military tax." They make them pay for a slew of other things as well. The U.S government is not the auto makers' friend. The politicians here can't understand that government is not intended to be a money machine.

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I'll agree that our government shouldn't extend the loans. I was just using a hypothetical to make my point stronger.

I'm not really buying the concept that the auto makers are in a financial bind. Chrysler, yes. They have been on a downward spiral for a while. GM, if they cut jobs from the top, should be able to rebound quickly, assuming they are in a bind. A white collar job that has little impact can free up funds to pay for at least three factory workers (Depending on how high up the position is). Ford is full of people who can adjust quickly to forecast changes. They have done it before.

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I must say, however, it really isn't that simple. Cutting corporate jobs isn't going to suddenly save GM (who is in DIRE financial straights, far worse than Chrysler). The real problem lies in the fact that GM is trapped in a legal web, unable to downsize to a reasonable size, given their market share, without paying billions. Many states have made it so that GM must pay a sizable chunk of money if they want to close dealerships or factories (not to mention the pensions they have to pay that are literally sucking them dry). That is why GM has 6,000 dealerships across the country, while Toyota, who has a slightly larger market share, has 2,000, and has a great deal of unused manufacturing capacity (I think they would have to close 8 factories (can't remember the exact statistic) to have justifiable manufacturing capabilities). They literally can't afford to make themselves profitable again. If they were to declare chapter 11 bankruptcy though, those factories and dealerships could be closed (and they could get rid of some benefits they provide to retirees and employees that they simply cannot afford anymore) without GM having to pay billions of dollars that they do not have. Downsizing is the only way to stop hemorrhaging 2 billion dollars a month and the only way they can do it without a blank check from the tax-payers is bankruptcy.

Honestly, cutting jobs just isn't enough here. They aren't paying executives 2 billion dollars a month.

So Sony is apparently cutting jobs in other markets and not in America? And they are cutting 8000 jobs over 14-18 months from now?

How did this make big news when ATT cut 12,000 Jobs, in America

Locally manufacturing started hurting last December. We have a lot of factories in this area that deal with automotive. No one has been buying the big three's product. And it has gotten worse as the months progressed through this year. There are some plants here that closed at the beginning of November and are not planning to open back up until after Christmas, but with a smaller workforce. Then there are those that have significantly cut their workforce and have no plans at this point to call them back. There are a lot of plants, like the one I am at, that are rotating workers out every other week on unemployment trying to make it through until things begin to pick up. My plant is affected by automotive, motor cycles, four wheelers, tow-motors, anything that has an oil cooler or radiator in it. It is becoming hard to get five days of work each week. Right now I think that much of what is happening in our economy is probably isolated geographically. But the ripples could grow easily as money becomes hard to get a hold of.

The plant I'm at is hurting right now. We've cut half our hourly and 40-50 salary jobs so far.

I know quite a few financial analysts... brokers...etc... lets just say this, do not put ANYTHING else on credit. Pay off whatever debt you can asap. That will protect you in the future too.

Slow down isn't bad, but honestly, who knows what this will actually turn into. I'm sure things will be fine and boom again.

@ aleeock, I'm sorry to hear that... that must be hard.

†B†V† :hat

A call center that I used to work at shut down the other day as part of AT&T's 12 (or 15?) thousand job cut plan. I still knew a couple people that were working there, so it was kind of sad to see that place go. On the other hand, I hated that job, and seeing it shut down was in some way enjoyable.

As much as economic recession sucks I really do believe that some good can come out of it. Certain industries and business models need to be re-evaluated, and a good ol economic slowdown is just the thing that can trim a lot of fat, so to speak.

Its just too bad the little guy ends up taking the hit first.