Sony has said that it will halve the number of parts suppliers it uses in a bid to slash costs.
It aims to reduce purchasing costs by 20 percent, or 500 billion yen ($5.3b/£3.4b), this year, according to an Associated Press report.
Earlier this month the company reported its first annual net loss in 14 years. It posted a $1 billion loss for the fiscal year ended March 31, 2009, a figure it expects to grow during the current business year.
In reaction it is moving to cut its parts suppliers from about 2,500 to 1,200.
In the past, Sony divisions each worked out their own contracts with different suppliers, but negotiations will be centralised going forward, said the company.
Sony’s games division, which had previously been given more freedom to procure parts than others, will likely be affected by the move. Last year the division managed to more than halve its operating losses, thanks in part to PS3 hardware cost reductions.
"We are fundamentally transforming Sony into a more innovative, integrated and agile global company," Sony CEO Howard Stringer said.
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