Sony Announces Restructuring Plan

January 21, 2009 6:34 a.m. EST

Tokyo, Japan (AHN) - Japanese electronics and media giant Sony is expected to announce a major restructuring plan on Wednesday or Thursday, amid reported infighting between Sony executives over whether to cut more jobs.

A report by the Financial Times said Sony chairman Howard Stringer is planning to shed more jobs, but this plan has run into opposition from executives in the electronic division, particularly from an "old guard" of managers in the electronics business.

On Dec. 9, Sonny announced a 16,000 jobs cutback worldwide, but only a few hundred of them were in the U.S. The company has an estimated 160,000 workers across the globe.

Stringer is believed to be planning a restructuring of the U.S. operations. Sony has several offices in the U.S., including Sony Pictures Entertainment in Los Angeles; Sony Online Entertainment and Sony Electronics in San Diego; and Sony Computer Entertainment in Foster City, California.

The company is also scheduled to release a report this month, detailing the effects of the global economic crisis on its fiscal third-quarter results.

Sony fell 3 percent to 1,964 yen as of 9:46 a.m. on the Tokyo Stock Exchange, its lowest since Dec. 30. The benchmark Nikkei 225 Stock Average dropped 2 percent.