Sony To Close Down Audio Operation 23% Slump In Consumer Business
Sony is set to get out of some of their audio production in an effort to cut costs after the struggling Japanese Company forecast a 23% decrease in revenue from consumer products.
Sony executives have admitted that they expect lacklustre performance in its electronic business for the current fiscal year due to the impact of the coronavirus pandemic.
The company is forecasting a 23% decrease in operating profit for the year ending March 2021 to US $644 million.
In an effort to cut costs the Company has moved to consolidate its audio factory operations with more plant closures tipped around the world.
At this stage it is not known whether Sony will cut back on their audio product range.
In Australia Abel Makhraz the Deputy General Manager at Sony Australia and the man responsible for their audio business was walked to the door recently in a move that has shocked insiders.
Sony will consolidate its two factories in Malaysia by the end of September next year in a move to streamline production and cut costs.
Their audio product factory located in the Malaysian state of Penang will be closed down resulting in more than 3,600 employees being laid off.
The plant is the main production site for audio products such as headphones and home audio equipment.
The company plans to stop operations by the end of September 2021 and close the facility by the end of March 2022.
The manufacturing functions will be transferred to its factory in Kuala Lumpur, which is Sony’s main manufacturing plant for TVs.
All of Sony’s plants have been affected due to COVID-19 shutdowns ordered by the Malaysian Government.
Both plants have been in operation since 1988.
The company also plans to shut down its TV and audio factory in Brazil next year, which has been in operation since its establishment in 1984 as Sony’s only manufacturing facility in the country.