Sony Chief Executive Howard Stringer (L) and President & Chief Executive of the electronics division Ryoji Chubachi. (Photo: Yahoo)

    TOKYO, Sept. 22 (Xinhuanet) -- Sony Corp. announced Thursday it will cut 10,000 jobs worldwide by the end of fiscal 2007 and consolidate business into three core sectors to revitalize the struggling electronic giant.

    Sony aims to realize consolidated sales of 8,000 billion yen (72 billion US dollars) and an operating profit margin of 5 percent on a group basis in fiscal 2007 ending in March 31, 2008, and reduce cost by 200 billion yen (1.8 billion dollars) by then, according to the company's mid-term corporate strategy report.

    The company also released a bleak earnings forecast for the current fiscal year ending next March 31, featuring a group operating loss of 20 billion yen (180 million dollars) and a group net loss of 10 billion yen (90 million dollars).

    The job cut will include 4,000 domestic positions and 6,000 ones abroad. The planned reduction accounts for 7 percent of its current global workforce of 150,000.

    Under the reconstruction plan which is expected to cost 210 billion yen (1.9 billion dollars), the company will be concentrating on three sectors -- electronics, games and entertainment.

    In the electronics business, Sony intends to build a leading position in televisions, digital imaging products, DVD recorders, and portable audio products.

    The company will mainly invest resources in high-definition products, mobile products and the semiconductors/key component devices that can continue to differentiate those products from the competition, according to the strategy.

    To bolster electronics business, Sony will abolish the existing in-house company system, to let Chairman Howard Stringer and President Ryoji Chubachi lead the company more strongly and effectively.

    In order to achieve the cost reduction goal, Sony also will downsize, merge and spin off 15 businesses; reduce the number of models by 20 percent compared to fiscal 2005; and reduce the number of manufacturing sites from 65 to 54, the company said.

    By the end of fiscal 2007, Sony will sale real estate, stock and certain non-core assets totaling 120 billion yen (1.1 billion dollars). Enditem