Sony restructures as president steps down

2 Mar 2009

Sony is to implement a major re-organisation of its business divisions after current president Ryoji Chubachi becomes vice-president and CEO Howard Stringer assumes the president role.

A new Networked Products and Services group will bundle in Sony’s Vaio PC business with its entertainment, mobile products and media and services divisions.

The company says its PlayStation network service platform will be “integral” to the creation of new products within the new group.

Another new business division, the Consumer Products Group, will incorporate Sony’s television, digital imaging, home audio and video divisions.

“This re-organisation is designed to transform Sony into a more innovative, integrated and agile global company with its next generation of leadership firmly in place,” Stringer said in a statement.

The Japanese electronics and entertainment company is projecting its first annual net loss in 14 years.

Sony is expecting a 150 billion yen net loss for the fiscal year through March. That’s a reversal from a net profit of 369.4 billion yen the previous year.

The last time Sony reported a loss was 1995, when lax cost controls and inflated budgets marred the performance of its movie division.

By John Kennedy

Pictured: CEO of Sony, Howard Stringer, who is shortly to assume the role of president