Sony Corp. (SNE)’s new CEO Kazuo Hirai took over for Howard Stringer this month and is aiming for a turnaround to revive their consumer electronics business. The giant has been losing business to leaders Apple Inc. (AAPL) and Samsung Electronics, but Hirai said, “I am determined to transform and revive Sony. This is our only chance to change,” according to Reuters. (STAY AHEAD OF THE CURVE: Follow Kapitall on Twitter)
They plan to cut 10,000 jobs and spend $926 million this year to restructure the business, Hirai saying that they cannot shy away from difficult decisions. He also plans to use his experience with strengthening the PlayStation video gaming unit to make Sony a leader in the mobile phone market, as well as strengthen their television business.
Despite Hirai’s enthusiasm, investors are still worried about the long-term health of the company, saying that Hirai did not explain how he would reach his targets. Tetsuro Li, president of Commons Asset Management said, “It doesn't feel like an aggressive makeover. You can't really see the roadmap for how they're going to revive the electronics business, nor how they're going to create new value."
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(Written by Danny Guttridge)