As part of Sony's reconstruction plan, Sony will leave the optical disc drive business by next year.
According to unconfirmed sources, Sony Optiarc Inc., a wholly owned subsidiary that produces CD and DVD drives used in personal computers, will cease operations by March, sources said Aug. 24.
The move comes as Sony is trying to close its money-losing divisions.
Most of the 400 employees in Japan and abroad will be let go through an early retirement program, The Asahi Shimbun paper noted today.
Sony posted a net loss of 457 billion yen ($5.8 billion) in fiscal 2011. The comnpany has been trying to rebuild its operations by focusing on core divisions, such as games and image sensors. The company is also looking to cut its global work force by 10,000 by March and has already shed thousands of jobs.
Sony Optiarc holds a 10-15 percent share of the global market for optical disc drives,. But it has reported operating losses due to a shrinking market for notebook computers and intensifying price competition rivals.
The company was established in 2006 as a joint venture with NEC and turned into a full Sony subsidiary in 2008.