Sony to close 20 of 31 US stores and cut 1,000 jobs as part of restructure
Sony Electronics has announced it will soon close two-thirds of its retail locations across the US.
The Japanese-based consumer electronics company has 31 stores in the US, but 20 of them are now shutting down to maintain "competitiveness in an evolving consumer electronics market". As listed on Sony's website, the 11 remaining US stores are mostly located in major metropolitan areas such as New York City, Los Angeles, Orlando, and Houston.
"While these moves were extremely tough, they were absolutely necessary to position us in the best possible place for future growth," said Mike Fasulo, President and COO of Sony Electronics. "I am entirely confident in our ability to turn the business around, in achieving our preferred future, and continue building on our flawless commitment to customer loyalty through the complete entertainment experience only Sony can offer."
This significant reduction further means Sony will cut roughly 1,000 jobs in the US, though those positions are part of a previously announced reduction of 5,000 jobs globally. Sony, which is known for its PlayStation console and Bravia TV, is striving to get ahead in the smartphone and computer markets, but it is fledging, especially with major companies like Apple and Samsung Electronics dominating the gadget space.
As part of its restructure, Sony is also selling its struggling Vaio computer business to Japan Industrial Partners, a buyout firm that specialises in turnarounds and acquisitions in manufacturing. Sony is trying to stem its losses but also plans to regain market leadership by bulking its 4K product lineup and bolstering 2K models in 2014, among other things.