Amid the struggling economy, Sony (the manufacturer of the Sony Reader) is cutting over 8,000 jobs worldwide which is equal to about 4% of its workforce. The move seems to be preemptive to cut costs and yield better profits. The varying value of the dollar against the yen is affecting overall profits as 80% of Sony’s sales are made outside Japan. Analysts suggest that the cost cutting measures might not be sufficient.
“The entire high-tech market is being seriously hurt,” Miura said. “Japanese companies are all in trouble because of this unexpected worldwide slowdown.”
I heard on the radio the other day that Asian companies do not layoff people as it is considered a loss of face. The San Diego branch that houses the Sony Reader does not seem to be affected but considering a lot fewer people read ebooks than play video games, I admit to being somewhat worried.