In a plan to cut losses, reduce staff redundancy and focus on profitable categories, Sony announced last week it plans to lay off 10,000 employees over the next three years, roughly seven percent of the company’s workforce. Approximately 4,000 of the layoffs will occur in Japan.

In addition, Sony plans to shut down 11 of its 65 manufacturing plants, discard 15 product categories and discontinue 20 percent of existing products. Twelve percent of Sony product lines will be cut.

Sony said it will refocus on product categories that include digital imaging, portable music devices, televisions and video recorders.

Sony ME in Australia was sweating on the news that was due to come through about this recently, as it was rumoured that ME would be dropped completely from '06 onwards. Officially ME continues, and Sony's own marketing and ME specialists are putting on a brave face while promoting the all new 'black' range which is said to be focussed on sound quality. Nothing at all to do with getting away from the red stuff that has tarnished their image in the past few years mind you...

'Focussed on SQ' is very interesting for them to chime on about, especially when none of their new sources have time alignment of parametric EQ, they don't quote RMS figures for the powered outputs of the sources, RMS voltage for thier RCA pre outs, and release DVD source units promoting DTS whcih come equipped with digital toslink outputs yet don't actually offer an outboard processor to recieve this digital signal and process it in any way.

Sony's has relied on its reputation for the past three years alone, and they are now paying the price. No pity here, serves them right.

Correct me if i am wrong, but rumour has it that Sony may be pulling out of Car Audio in the U.S. very soon.