Sony to Sell PC Business; TV Business to Become Wholly-owned Subsidiary
It’s no secret that Sony is trying to transform its electronics business. In 2012, it has decided that it’ll consolidate its future efforts into three main businesses: imaging, gaming, and mobile. Since then, any business outside of these three always faces the prospect of being axed. And today, this misfortune falls on its PC division, which operates the Vaio brand.
Through a press release, Sony has confirmed the rumor that it’ll be selling its PC business to Japan Industrial Partners (JIP), in order to concentrate on its smartphone and tablet business. The final terms are due by the end of March 2014. For existing customers, Sony says it’ll continue to provide aftercare customer services. The new company will continue to sell PCs to consumers and businesses, though only for the Japan market.
For its TV business, Sony intends to accelerate the shift to high-end models (especially 4K), which is expected since the profit margins there are higher. It’ll also strengthen its 2K lineup with ‘wide color range and image-enhancing technologies’. Structurally, Sony will also split out the TV business, and operate it as a wholly-owned subsidiary by July 2014. With cost cutting measures set to continue, the company aims to return the TV business to profitability by the fiscal year ending March 31, 2015.
As a result of the sale of its Vaio PC business and the restructuring of its TV business, Sony will also be laying off 5,000 staff (1,500 in Japan and 3,500 overseas). Some 200 to 300 current employees will move to the new company set up by JIP; some will be transferred to other businesses within Sony; and some will be offered an early retirement support program.