Sony slashing jobs, leaving unprofitable businesses

[NJ5]

kowenicki said:

Some odd reactions here.. this is not good news and I dont understand how it can be seen as such. Many market commentators are still not happy and wanted to see much more from Sony.

(...)

"The number sounds big, but this staff reduction won't be enough," said Katsuhiko Mori, a fund manager at Daiwa SB Investments.

"Sony doesn't have any core businesses that generate stable profits - the next thing we want to see is what is going to be the business that will drive the company."

It is not enough in the sense that they'll still be having unprofitable quarters. $1 billion per year is at least 4 times less than the yearly losses I would expect from here on (not for this fiscal year as we're already halfway through it, and the first half was profitable). That's just for the currency problem btw, meaning before accounting for sales drops due to the recession.