Sony announced last November that it would make $250 million in cuts in its entertainment division over the next few years. Now, the amount appears to be rising.
On Thursday, Sony Corp CEO Kazuo Hirai said it would trim down the Culver City based Sony Pictures Entertainment by $300 million. According to the Hollywood Reporter, Hirai didn't say where the additional cuts would come from, but said they'd be complete by the end of the fiscal year that runs through March of 2016. Hirai also maintained that entertainment was just as important as electronics at Sony.
When the initial cuts were announced last November, Amy Pascal, Co-Chairman of Sony Pictures Entertainment, said the studio planned to trim the number of movies it released each from 20 to 18. Job cuts were also a possibility that later became a reality.
Two months ago, KPCC reported that Sony had filed a notice with the California Employment Development Department to lay off about 216 employees.
On Thursday, Hirai said Sony has accumulated huge losses because it has not responded quickly enough to changing market conditions but is promising a return to profit next year.
Kazuo Hirai was speaking to reporters after the Japanese electronics and entertainment company last week reported a $1.3 billion loss for the fiscal year ending in March. It is forecasting a $490 million loss for the current fiscal year.
Last year, activist investor Daniel Loeb pressured Sony to spin off its entertainment division, but the company has resisted the pressure. According to the New York Times, Loeb had a polite meeting with Sony senior management in Tokyo last week.