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Friday, February 27, 2009
Sony Announces Major Reorganization Plan, Focuses on Networked Devices

Sony today announced a major reorganization and a new management team. Sony expects that the changes, effective April 1, 2009, will reorganize the company's electronics and game businesses to improve profitability.

Sony said that they would accelerate the production of networked products and services by strategically integrating these two business groups.

"This reorganization is designed to transform Sony into a more innovative, integrated and agile global company with its next generation of leadership firmly in place. The changes we?re announcing today will accelerate the transformation of the Company that began four years ago. They will now make it possible for all of Sony's parts to work together to assume a position of worldwide leadership and, together, achieve great things," said Howard Stringer.

The Board of Directors has endorsed a reorganization of the Company naming Mr. Stringer as President of Sony Corporation in addition to his current responsibilities of Chairman and CEO.

At the heart of the reorganization is the formation of two new business groups:

- The Networked Products & Services Group will include Sony Computer Entertainment (SCE); personal computers (VAIO); new mobile products, including the current WALKMAN lines; and Sony Media Software and Services, which develops a common service platform across Sony products. The mandate of the group is to maximize the potential and pace of Sony's innovation and to enhance profitability in networked products and services. The group also plans to expand the PlayStation Network service platform, which currently has 20 million registered accounts globally, according to Sony.

- The New Consumer Products Group (the New CPG) will include the current Television, Digital Imaging, Home Audio and Video businesses. The New CPG will also concentrate resources on further development and growth in emerging markets.

In addition, two cross-company units will be created with the aim of ensuring that Sony's networked products and services can communicate with a common user interface and will reach consumers in a more efficient manner:

- The Common Software and Technology team will develop and implement integrated technology and software solutions across the products groups, and provide coordinated software development services to the product groups.

- The Manufacturing/Logistics/Procurement team will be charged with ensuring the most efficient supply chain solutions throughout these two new business groups. The group will leverage scale in procurement, eliminate duplication and redundancy, outsource manufacturing and design processes as appropriate, and help improve the company's green product profile.

Sony started its current management structure in June 2005. Since then, Sony has implemented a number of structural reforms, resulting to a fiscal year records in sales and net income in the fiscal year 2007.

Additional details of these organizational and personnel changes will be announced at a later date, Sony said.

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