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Sony to cull 10,000 jobs as firm forecasts $6.4 billion loss in 2012

Japanese giant hit by US tax allowance charge

Sony to cull 10,000 jobs as firm forecasts $6.4 billion loss in 2012
In something of a double whammy, Sony has upped projected losses for its 2011-2012 financial year just as news breaks it's about to cut 10,000 jobs.

Sony now expects to post a net loss of ¥520 billion (around $6.4 billion) in the fiscal year ended 31 March 2012 owing to what it claims is a ¥300 billion tax expense.

It's detailed as a non-cash charge, in terms of allowances on 'certain deferred tax assets', mainly in the US.

"Due to the recording of this additional tax expense, net loss attributable to Sony Corporation's stockholders is expected to be significantly greater than the February forecast," Sony said in a statement.

On a loser

Sony had previously forecast full year losses of ¥220 billion (around $2.7 billion) back in February, though the company still claims it is looking to return to profit over the course of the next 12 months.

Much of this profit, it's believed, may well come from a restructuring that will see Sony pull out of unprofitable markets and, according to Japanese newspaper Nikkei, cull 10,000 jobs.

Newly appointed CEO Kaz Hirai is expected to turn his attention to the TV market, where Sony has been undercut by its rivals in recent years.

Workers in Sony's small and medium sized LCD screen factories are expected to lose their jobs as a result, with analysts claiming the firm's current annual TV sales of around 20 million aren't enough to push the division back into the black.

Sony's full consolidated financial results will be announced on 10 May.

[source: Sony (PDF)]

With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font.