Sony exits PC business, warns of full-year loss
Sony on Thursday unveiled major restructuring measures to turn its fortunes around, including exiting its PC business and spinning off its TV operations, but warned that it expects to post a full-year loss as a result of the overhaul.
The Japanese tech giant confirmed that it will sell its struggling PC unit to investment firm Japan Industrial Partners. Financial terms of the deal were not disclosed but Sony said it will take a 5 percent stake in the new outfit.
Meanwhile, Sony's flagship TV manufacturing business – that has lost $7.5 billion over the last 10 years – will be spun off by July this year, it added.
(Read more: Sony shares soar on plan to dispose PC business)
The announcement came as Sony reported much better than expected corporate earnings. Net profit for the nine-months ending December 2013 came in at 11.17 billion yen ($110.3 million), much better than a Reuters forecast for a loss of 110 billion yen.
Sony said it will cut around 5,000 jobs in its TV, PC, marketing and other departments, which will trim 100 billion yen a year in fixed costs starting fiscal year 2015-2016.
But in the term term, the restructuring will push the company into the red – Sony now expects to post a net loss of 110 billion yen for this fiscal year. It's previous forecast was for a 30 billion yen profit.
(Read more: Clock ticking for Sony to prove it can turn around)
Exiting the Vaio PC business Sony founded 17 years ago will mark the first time Chief Executive Officer Kazuo Hirai pulls a major consumer product line.
This follows Sony's disposal of assets such as its New York headquarters and a major building in Tokyo last year.
Sony shares were up 1.5 percent Thursday ahead of its results.
(Read more: Sony CEO: TV business is 'certainly not for sale')
— Reuters contributed to this report.
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