Sony Pictures Slashes Positions11 Mar, 2009 By: Chris Tribbey
Citing significant drops in its DVD, TV syndication and advertising sales business, Sony Pictures Entertainment announced March 10 that it was cutting 3.5% of its workforce worldwide.
A source with knowledge of the cuts said the cuts were across all divisions of Sony Pictures, including Sony Pictures Home Entertainment. No other details were available.
The Associated Press reported that the cuts amounted to about 250 positions, with another 100 vacant jobs being eliminated. Less than 150 Sony Pictures employees, mostly in Los Angeles, were among the cuts, the AP reported.
“These economic effects have, regretfully, made it necessary to take the step we had hoped to avoid, and worked hard to minimize: reducing our headcount to ensure the stability and success of our business going forward,” wrote CEO Michael Lynton and studio co-chair Amy Pascal in a letter to employees. “People whose positions are being impacted are being notified, and supervisors will be providing more information about this announcement to employees.”
The layoffs come following other cost-cutting moves by Sony in October, including executive benefits.
“We want to create a culture here at Sony Pictures that will sustain this business in good times and bad. And it is in that spirit that we hope to emerge from this time of trial stronger and more resilient than ever,” Lynton’s and Pascal’s letter read.
Sony Pictures’ Japanese parent announced in December that it was slashing 8,000 full-time jobs worldwide. In February, Sony Corp. announced it was preparing to report an operating loss of nearly $3 billion for fiscal year 2008.