Sony's PC business is about to stop and Vaio will be independent

February 6, 2014, Sony released the content of the Sony Electronics Division plan. Sony will sell its PC business around the Vaio brand to Japanese industry parters (JIP) by July 2014, and its television manufacturing unit will be stripped of its new subsidiary. In addition to the relevant research and development, production, sales related staff placement adjustment work is also gradually carried out, the purpose of these actions is nothing but the electronic sector of the current loss of early conversion to profitability. For the sale of the PC business, JIP will set up a new company and integrated Vaio brand, VAIO brand of PC development and sales will continue.

"PC business and TV manufacturing are hard to get out of the red in March 2014," said Sony chairman and CEO Hirai. Sony Electronics business is currently divided into digital imaging (digital cameras and digital cameras and CMOS sensors) department, the game. Network Service Department, Mobile Department (mobile phone, flat). These three businesses are the core departments of the electronic business. Other businesses will plan to make fundamental changes in a more systematic way. The sale of PC business and the branch of TV manufacturing business are the matters that have been decided at present. ”

The "VAIO" brand is a PC business launched in 1996, and the JIP Fund, which assists in the renumbering and division of the business, is to be acquired and the basic letter of intent has been signed. In the future, the two companies will enter into a formal contract by March 2014 with the advance of specific agreement and review steps. Thereafter, JIP will set up a new company to integrate Sony's PC business with extremely relevant assets, while the Vaio brand's business will continue to unfold. Sony will account for 5% of the new company's share of the investment, with a view to smooth business transfer.

Sony itself will completely stop its PC business this spring, and will focus on smartphones and tablet orientation in mobile-related areas in the future. The "Windows platform Product", which has blurred PC and tablet boundaries, will also be handed over to the new company. Pingki said.

Product level and operating level of all the Vaio

Sony's PC business moved its business headquarters to Changye County An Yun in 2010. Since then the development and production departments have merged. The new company will also be addressing the Nagano Hi-Tech Park (Marvell Site) as part of the company, and in Japan for the center of the PC's planning, design, development and production processes. In addition, the management team of the new company is scheduled to be centered by Akabane, currently leading the PC business.

But the current 1100-person PC-related business people, only 250 to 300 people will join the new company. Other employees will be enrolled in other parts of Sony, or be downsized.

As for the end of the PC business, Hirai: "The VAIO computer brand is not Sony's ordinary business, but the backbone of Sony's product line in terms of function and design." Whether in operation or supply chain management operations, have been walking in the forefront of the times. For these two areas have made such a huge contribution to the business, today to make the choice of stripping, but also to make the helpless. And based on the sacrifice of the PC business, Sony's other businesses can survive. ”

Sony PC business unit, Changye County An Yun

10 running deficit TV service will be branch

The PC business, on the other hand, has been heavily delayed for the March 2014 goal of the black-letter target, which, while reducing its deficit, still generates a deficit of 25 billion trillion yen. Unexpected factors such as the slow growth of emerging markets and the devaluation of the yen have played a large part. The deficit in the television manufacturing business has lasted for 9 years until March 2013, and the deficit record has continued to 10 years after the publication. The goal in the future on the one hand targeted at the high value-added 4K TV as the center, on the other hand, in order to clear the business responsibility of the goal of rapid and effective implementation, decided to July 2014 before the branch of the business, and completely to the subsidiary operations. Branch of the company, the President of the subsidiary is scheduled to be the television division of the business director SVP's current village Changzhi.

On the significance of the division, Pingki said: "Sony's gaming department Sony Computer Entertainment as well as the mobile sector Sony Mobile communications, such as the main pillar of the management of the subsidiary is the precedent. But it is only later to judge the importance of the business. "There is no such plan, but in general, no matter what kind of business will not be able to rule out the possibility of the future," Pingki said. ”

5,000 employees will be abolished at home and abroad

This time along with the PC business and television business of the reorganization process, the related business of trafficking, manufacturing, the company's internal collation of the policy. The selection of commodity listings by the trafficking enterprises in the country and territory and other indirect functional sectors will be adjusted. Reduce the cost by about 20% by March 2016. Manufacturing operations related to production and other operations related to the business will be in the direction of intensification.

At present, the manufacturing positions related to TV production are: Aizhi County, the Shanghai So Guang Elephant in Shanghai, and the Sony Brasil Manaus of Brazil Manaus. According to the previous PC business Changye County An Yun Marvell site will also be intensive adjustment of the way, the above TV-related business units will be likely to carry out further intensive downsizing.

In addition, Sony's functional departments and indirect departments will also adapt to this adjustment. By March 2016, the cost will be reduced by 30%. As part of this adjustment, by March 2015, there will be 5,000 job cuts at home and abroad (1500 people in Japan and 3500 overseas).

March 2014 earnings deficit reduced by 110 billion yen

According to the plan, the cost of structural reform has increased by 20 billion yen. At this point, Sony's structural reform costs will reach 70 billion trillion yen. In addition to the battery business of the loss of processing costs 32.1 billion yen, game field on the PC-side software valuation to reduce the losses of 6.2 billion yen. March 2014-year net profit from the October 2013 30 billion yen black word, worsened 140 billion yen, resulting in 110 billion yen deficit. In addition to the television business, all the electronic sector must achieve the goal-the realization of the black word is also very reluctant.

The severe competition situation faced by Sony's other business pools

Sony stressed that "the March 2015 period in the electronic sector to achieve the black word" (Pingki language), and the actual achievement is affected by external factors, is an uncertain result.

The key business of "transforming investment into Results" (PINGKI) is three-mobile, digital imaging, gaming network services are now facing a brutal market competition. The reason the PC business has been bitter is also influenced by the popularity of the smart machines. The digital imaging business, however, was affected by compact digital Camara and camera-enabled cameras, which led to a narrowing of the market. In the game, the sale of PS4 in November 2013 sold 4.2 million units in the body, and the game software sold 9.7 million good results, but facing the expansion of the smartphone game, it is not clear what kind of impact the home game market will suffer.

In addition to the impact of the source of the smart machines and tablet market, the market growth is also close to saturation. Sony, in fact, has reduced its target of 42 million units to 40 million this year, as evidenced by the plight of the mobile sector.

Sony will be revamping the electronics sector after March 2015 and the cost of the renovation is expected to reach 70 billion trillion yen. As a result of the further development of the target, the real rebirth is still a long way off.