Report: Sony Considering Major Restructuring?

Sony may be about to institute a significant new restructuring campaign that could see job cuts and and reorganizations -- or closings -- of a number of high-profile divisions. Citing only unnamed "company sources", the UK Times Online reports that Sony Group is braced for a 'sacred cow-slaying' that will also include major job cuts. The measures are expected to be announced in detail in February, after the Consumer Electronics Show (CES) this month, but there are no specifics on whether major video game-related Sony divisions might be affected by the potential changes. Sony’s Japanese operations, which have been adversely hit by the strong yen, are expected to be the most heavily affected, with new factory closures alongside the shuttering of what The Times describes as "several major divisions". The company recently cut 8,000 jobs -- 4 percent of its global workforce -– and announced plans to close several manufacturing plants, reduce investment in electronics and increase the use of outsourcing. Analysts have said a major restructuring at Sony is overdue lest the company widen losses and fall further behind its rivals. Credit Suisse analyst Koya Tabata has said that the company’s research and development should focus on software, not hardware. In the latest report, Tabata suggests Sony Corp chairman and CEO Howard Stringer should be given further organizational control in order to compete. "The most important thing is that, to improve organizational strength in the areas of development, purchasing and marketing, it will be necessary to further concentrate power in the hands of [CEO Howard Stringer]," says Tabata. "Unless this is achieved we believe [Sony] will be unable to close the gap with competitors such as Apple and Nintendo." [UPDATE: Reuters has received a statement from Sony Japan spokesperson Atsuo Omagari denying the reports, and officially commenting: "We do not plan to announce additional restructuring measures at this time... we don't have any such plan."]