Sony Corp.(new products and corporate restructuring)(Brief Article)

Industry Week, June, 1999 by TERESKO, JOHN

LATEST MOVES: THE STUNNING NEW PLAYSTATION II AND A CONTINUING CORPORATE RESTRUCTURING.

IN MARCH JAPAN'S SONY CORP. played two cards that will help secure its future. One was a reorganization that will pare about 10% of its workforce (about 17,000 workers) by Mar. 31, 2003. The plan turns three subsidiaries into wholly owned units and creates five in-house companies. The intent, Sony President Nobuyuki Idei, told Bungei Shunju (a Japanese publication) is to "see Sony grow by means of business units that are increasingly managed independently while interacting in a complementary fashion."

Analysts note that under the Japanese system independently run units spotlight the money losers, and such a business structure also provides a more acceptable...

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