Bain and Co. brought in to advise, job losses in entertainment business expected
Sony has hired a management consultancy firm to advise on $100 million of imminent cuts. According to a report from Bloomberg, a source with knowledge of the proceedings has claimed that Bain & Co. will assist in making significant cuts across various divisions, including an undecided number of job losses.
The cuts are part of an ongoing process of streamlining within Sony, but they are also said to be a direct response to its disappointing second-quarter results, in which the company’s earnings forecast was slashed by 40 per cent. This led Moody’s Investor’s Service to threaten to downgrade Sony’s debt rating to “junk” unless improvements were made.
However, the cuts are likely to focus on Sony’s film, television and music divisions. Right now, the company’s gaming business is enjoying a period of great promise, after selling more than 1 million units of the PlayStation 4 on its US launch day.