Yet another blow to the electronics giant after just announcing the elimination of 10,000 jobs, Sony has said that its annual loss is expected to be $6.4 billion, twice that of what was predicted earlier. This is in addition to it being the fourth year in a row of losses for the company. New CEO Kazuo Hirai, who just stepped into the position this month, now has an incredible amount of pressure on his shoulders to turn the company around.
In addition to its detailed plans on how to revitalize their consumer products, Sony is forecasting that it will earn an operating profit of 180 billion yen ($2.2 billion) by the end of the current year ending in March 2013. They are also pledging to get their TV division back in line within the next two years. This may be difficult to accept, seeing as how the manufacturer has lost $10 billion over the last ten years from their TVs alone.
When asked if there would be any executives shown the door after such record-setting losses, Chief Financial Officer Masaru Katu would admit nothing more than that management changes have been made. Sony’s stock has dropped by almost 50% in just over a year. In another recent revision, they had to add another $300 billion to their net losses ending in March 2012, mostly due to writing off deferred tax assets.