Sony May Integrate Domestic TV Production

Sony said it may integrate domestic TV production at one plant instead of its current two plants and is preparing to announce details of a restructuring plan later on Thursday.

The Nikkei business daily reported Sony will cut more than 2,000 full-time jobs as it move manufacturing bases, and that it will make the announcement along with a downward revision to its earnings outlook on Thursday.

Sony spokeswoman Mami Imada declined to comment on the possibility of a cut to the company's earnings outlook.

Shares in the maker of Bravia LCD TVs, Cyber-shot digital cameras and PlayStation game consoles, fell 1.1 percent in morning trade, underperforming a 0.3 percent decline in the benchmark Nikkei 225 Average

The company, which generates about two-thirds of its revenue outside Japan, is likely to suffer an annual operating loss of about 100 billion yen ($1.1 billion) in the year ending March 31, a person with knowledge of the matter told Reuters earlier this month.

It would be the first annual operating loss for Sony in 14 years. 

Analysts on average see an operating loss of 8.9 billion yen, according to a poll of 18 brokerages by Reuters Estimates.

Sony outlined plans last month to curb investment, close five to six plants and cut a total of 16,000 regular and contract jobs globally to save $1.1 billion a year in costs, as the global recession hurts demand for its products and a firm yen eats into profits made overseas.

More From CNBC.com

• Toyota Passes GM to Win No. 1 Global Sales Spot
• Apple Earnings Blow Past Forecasts; Shares Surge
• Intel to Scale Back Operations, Cut Up to 6,000 Jobs
• BHP Cuts 6,000 Jobs, Takes $1.6 Billion Hit on Mine
• More Asia Pacific News

The Nikkei said Sony plans to eliminate about 3 percent of its domestic full-time staff, or more than 2,000 workers, mainly through to natural attrition, by the end of the financial year ending in March 2010.

But talk of cutting jobs in Japan has met internal company resistance, the Financial Times reported this week.

Sony's two domestic TV plants are located in Aichi, central Japan, and the company is looking at integrating TV assembly and parts production into one of the factories and using the other for distribution and other purposes, Imada said.

She declined to comment on details, including the likely number employees to be affected by the move. The Nikkei also said Sony plans to slash executive and managerial-level bonuses to cut costs.

Copyright 2009 Reuters. Click for restrictions.