Sony to cut 8000 jobs, close manufacturing sites

[peterblaise]

<p>I hope our Sony Alpha Mount Camera division will stay afloat - Google news:</p>

<p>"Sony to cut 8000 jobs, close manufacturing sites"<br>

 

<p><a title="http://www.marketwatch.com/news/story/sony-cut-8000-jobs-close/story.aspx?guid=A5EB1D8F-5E88-4018-AB86-CDE303918D22&dist=SecEditorsPicks" href="http://www.marketwatch.com/news/story/sony-cut-8000-jobs-close/story.aspx?guid=A5EB1D8F-5E88-4018-AB86-CDE303918D22&dist=SecEditorsPicks">http://www.marketwatch.com/news/story/sony-cut-8000-jobs-close/story.aspx?guid=A5EB1D8F-5E88-4018-AB86-CDE303918D22&dist=SecEditorsPicks</a><br>

<a title="http://tinyurl.com/6qzogt" href="http://tinyurl.com/6qzogt">http://tinyurl.com/6qzogt</a></p>

</p>

<p>MarketWatch - 31 minutes ago<br>

By V. Phani Kumar & Chris Oliver, MarketWatch HONG KONG (MarketWatch) -- Sony Corp. said Tuesday it plans to cut 8000 jobs worldwide, becoming the latest Japanese global brand to announce a major restructuring since the onset of the global recession.<br>

Sony Will Cut 16000 Jobs as Recession Curbs Demand (Update2) Bloomberg<br>

Sony to Trim 8000 Jobs and Reduce Investment New York Times<br>

Reuters - The Associated Press - Forbes - guardian.co.uk</p>

<p>==</p>

<p>OUCH!   Buy our A900 now or do we expect a price drop soon?</p>

 

[sl attanapola]

<p>I hope the digital SLR division is NOT part of the budget and job cuts!!</p>

[dave_bernard]

<p>A900 needs a price drop OR competitive retail pricing.  They must have already skimmed the early adapters at their price point.<br>

I went to a local vendor show at a large regional dealer last week.  The usual big names exhibited.  Sony did not have the 24-70/2.8 to display, nor did they have brochures.  The competition had plenty.  This may have been a coincidence, but it didn't look good.<br>

Nikon is stealing Sony's thunder at the high end.  Sony hit hard with the A100, pricing attractive features and functions at a price point lots lower than the competition.  Now Sony introduces their A900 and Nikon the D700 at identical price point.<br>

Watch the D700 drop- from $3000 to under $2300 within the last couple months.  Sony stays frozen at $3000, nor will it allow retailers to discount.  I have to think this is costing them marketshare.<br>

No, I don't want to talk about cameras functions or which is better; this is about business & product & pricing...</p>

[JosvanEekelen]

<p>Sony seem to have announced that they will close their least profitable lines of business, I heard on the news, followed with the comment that none of Sony's businesses is very profitable at the moment. Recently there were figures about the profitability of DSLR makers. #1 and #2 were profitable with aroung 16% margin while Sony had a loss of about 16%. This economical crisis couldn't come at a worst time for Sony I guess. I hope they consider the DSLR business as important enough to keep it running.</p>

[ricardovaste]

<p>How is the A900 pricing not competitive?</p>

<p>My friends got his A900 for $2300USD brand new (not grey) last week. They are down to as low as 1645GBP at reputable retailers in the UK at the moment. A lot of people say the A900 & D700 compete (not just you Dave) - but honestly, can anyone see themselves weighing up these two cameras and not being able to choose between them? They are just so completely different in my mind, I'd never compare them in anything other than similar pricing.</p>

[ellis_vener_photography]

<p>Japanese companies tend to think longer term than most American companies. If they really think there is serious long term profitability  in the DSLR line they will continue it.</p>

[sl attanapola]

<p>They need to drop the price of their premium lenses to below that of Sony and Canon so as to attract new buyers. Around 10% lower than the equivalent Nikon and Canon glass may tempt new people towards buying the Zeiss glass and hence the higher end Sony dSLRs. Also they need to have more competitive priced  lower end lenses too.<br>

It would also help if  Sony improved the jpeg quality of their lower end dSLRs like the A100 and A200 via firmware update too. If you look carefully the auto ISO range of the A200 is only 100-400 for instance.</p>

[ricardovaste]

<p>I'm not so sure. A pro photog magazine did a comparison between the prices of Canon/Nikon/Sony systems recently - they all came out around the same. (body, standard zoom, tele zoom, flash). The glass is more expensive for Sony, but the body is also cheaper... and Sony Zeiss glass is generally unbeatable in many regards.</p>

<p>"Also they need to have more competitive priced  lower end lenses too."</p>

<p>I agree. This is the main market for Sony at the moment surely. We need more lower end lenses and lower prices.</p>

<p>"It would also help if  Sony improved the jpeg quality"</p>

<p>Most definately! That goes for any Sony camera IMO. I think if they spent more time on this we would get better colour with RAW too, which is what I'd be interested in. Like you say, a lot of users of the lower end cameras are likely to start out with JPEG's too (or only use jpegs), so it is more important for such cameras.</p>

[robert_paul1]

<p>Richard, in the US market, Sony has implemented the SURE program which was designed to make shopping for Alpha products "stress-free". The program prevents the retailer from discounting the price of a product below what the manufacturer's retail price. Normally, you'll see the 'suggested' retail price, MSRP, but a recent US Supreme Court ruling allows manufacturers to set the retail price. This would be illegal in the UK /Europe, but is allowed in the US.</p>

[ricardovaste]

<p>"The program prevents the retailer from discounting the price of a product below what the manufacturer's retail price."</p>

<p>"This would be illegal in the UK /Europe, but is allowed in the US."</p>

<p>What if a company is going out of business? ajpurdy had some crazy discounts last week, well below the RRP. Sadly, if you go to your local shop they will tell you that the A900's they have in stock probably won't last long, as prices are being increased in the new year. It's a shame this economic situations has came about around a key moment for Sony and the Alpha system.</p>

[robert_paul1]

<p>Richard, the price increases apply to most Japanese companies due to the strength of the Yen. Nikon probably has already figured this into the price of the D3X, but their other stuff could see price increases.</p>

[dave_bernard]

>>"...My friends got his A900 for $2300USD brand new (not grey) last week...."

 

Richard, could you please indicate the US retailer from whom he purchased?

 

Thank you.

[ricardovaste]

<p>Dave, it was not brought frm the US - he bought it from digitalrev. Regardless, even if there is a slight price difference - they are completely different cameras (but i have already tried to make that point...)</p>

[Renee Shipley]

<p>I live about 10 miles from one of the plants that's closing here in the US. It's a plant that employed a LOT of people in the 90's, and it's been trickling downward for a long time...to about 500 employees today. They made TVs there. Started out with the glass tube ones but now with the advent of the LCD...I'm not sure Sony is keeping pace with the Samsungs or Panasonics, etc. of the LCD TV world. I am not sure exactly what it is that Sony excels at....no one buys their MP3s, no one buys their TVs obviously, and their camera following comes from Minolta. What else do they do? Laptops? Everyone buys Dell or HP. So who is Sony? When you hear Sony, what product comes to mind? None, unfortunately...</p>

[Renee Shipley]

<p>I live about 10 miles from one of the plants that's closing here in the US. It's a plant that employed a LOT of people in the 90's, and it's been trickling downward for a long time...to about 500 employees today. They made TVs there. Started out with the glass tube ones but now with the advent of the LCD...I'm not sure Sony is keeping pace with the Samsungs or Panasonics, etc. of the LCD TV world. I am not sure exactly what it is that Sony excels at....no one buys their MP3s, no one buys their TVs obviously, and their camera following comes from Minolta. What else do they do? Laptops? Everyone buys Dell or HP. So who is Sony? When you hear Sony, what product comes to mind? None, unfortunately...</p>

[Brian]

<p>This thing of Sony not allowing retailers to charge below their "guide price" happens in the UK too. It's true that it is illegal for them to force retailers to charge a set price, so what they do is simply stop supplying dealers who discount their product.</p>

[peterblaise]

<p>.</p>

<p>Ouch! I wonder what will be th epipeline for Sony ALpha DSLRs?</p>

<p>

<p>"... Sony to Close Last US TV Factory ... its last remaining LCD TV plant in the US as part of a global restructuring announced this week ... Wednesday, December 10, 2008 ... its Westmoreland, Pennsylvania, plant as the second factory of a planned 5 or 6 that will be shut down as part of a global restructuring ... Sony's last remaining TV manufacturing facility in the U.S. and the closure will see 560 people lose their jobs ... On Tuesday Sony announced plans to close around 10 percent of its 57 factories worldwide and lay-off about 8,000 full-time staff and a similar number of temporary workers as part of measures to deal with slowdowns in many major markets. "The current economic climate was a key factor that led us to make the strategic business decision to streamline our manufacturing operations not only in the U.S. but worldwide," said Stan Glasgow, president and chief operating officer of Sony Electronics, in a statement ... Television manufacturing is scheduled to end at the plant by February 2009 after which Sony will supply the U.S. market from its factory in Baja, Mexico. The plant will close completely in March 2010 when the TV and Blu-ray Disc repair and U.S. east-coast logistics operations are also ended ... The Pittsburgh Technology Center, as the facility is known, first opened in 1990 and made large rear projection TVs. It switched to flat-panel LCD (liquid crystal display) production when that technology became popular and currently produces 46- and 52-inch LCD TVs ... In addition to the U.S. plant closure, Sony said on Tuesday that it would shutter its tape and media factory at the Sony Dax Technology Center in France. Expansion of LCD TV production at its Nitra LCD television factory in Slovakia has also been put on hold ... With the announcement of the Pittsburgh closure the spotlight now moves to Japan. Sony said two of the planned factory closures would be overseas so the remaining 3 or 4 factories yet-to-be-announced will be domestic plants. Sony has been dealt a double-blow by the current harsh economic conditions. A recession in its biggest markets is hitting sales and the strong Japanese yen is cutting into profits on products it does sell. In reaction to the appreciation of the yen Sony said it will be forced to hike some product prices in 2009 ..."</p>

<br>

<a href="http://www.pcworld.com/printable/article/id,155305/printable.html">http://www.pcworld.com/printable/article/id,155305/printable.html</a></p>

<p>.</p>

[peterblaise]

<p>.</p>

<p>Well, apparently some former Sony people have jobs, even though, "... He was also co-head of Connect, Sony's failed online media effort to take on Apple's iTunes Music Store ...":<br>

 

<p>"... Google Names Former Sony Engineer to Head Japan Ops ... Koichiro Tsujino, a former head of Sony's personal computer division, to lead its Japanese operations ... Wednesday, December 10, 2008 ... Tsujino is currently product management director at Google Japan and will take the new position from Jan. 1, according to a brief statement issued by the company. As president he will be responsible for all aspects of Google's operations in Japan. Since he joined Google in 2007 the company has introduced a number of new services in Japan including the Street View stream on Google Maps ... He will replace Norio Murakami who will go on to become chairman of the Japan operations. In this role Murakami's will work on outreach and policy issues in Japan and represents a step-up in such activities for the company. "In this new role, Norio will focus his work as Google's ambassador in Japan, working with leaders in government, industry and academia," the company said in a statement. Tsujino has headed various business units at Sony including its Vaio personal computer operations until 2006. He was also co-head of Connect, Sony's failed online media effort to take on Apple's iTunes Music Store and headed the company's set-top box operations ..." </p>

 

<br>

<a href="http://www.pcworld.com/printable/article/id,155309/printable.html">http://www.pcworld.com/printable/article/id,155309/printable.html</a></p>

<p>So, if the Sony Alpha Mount Camera division also fails to accomplish it's assigned goals (probably taking on Nikon and Canon?), then the bosses there see an example of finding jobs elsewhere. But where go the Minolta photographic engineers? I HOPE Sony sees continuted success in the Alpha line ... but I can't say that Best Buy (or Target, or Ritz, who still have Minolta DiMage Z-series cameras on display!) will be much help - I have stories! :-(</p>

<p>Any SUCCESS stories for the marketing of the Alpha, and Sony's future?</p>

<p>.</p>

[bill_caulfeild_browne]

<p>Here in Canada I hear the A900 (around US$2400) is selling like hot cakes. I bought two bodies myself, mainly because of the Zeiss glass which is so much better at wide angles than the Canon I used to use for my non MFDB shooting. I'm aware of at least two other people who have done the same. Personally, I love the camera and think the pricing is a heck of a deal. And the Zeiss 24-70 f2.8 is way better than my Canon 24-105, which I've now sold.<br>

Bill</p>

[a._t._burke]

<p>Sony is loosing sales when they need them most. I have an extensive Minolta film system. I was waiting for a full frame digital so my lenses would have the same perspective. I'd already have bought the A900 if they would have priced it in the low $2000s where it was supposed to sell when first announced. But..here is the USA they think we are all suckers and Sony set the price at $3000 here, $2400, thirty miles away from me in Canada. F 'em. Sticking to film does not hurt me any. I'll do that before I become a patsy for Sony!!!!! </p>

<p>What a shame to see the company go downhill. I got the first Sony color TV to be delivered in San Diego, CA way back when. Every TV I've bought since has been Sony, almost 40 years worth. I have Sony DVD players, Sony CD players, Sony VHS players, Sony Stereo Receivers, Sony portable radios (showing my age) and Sony Laptops. That is it for Sony. They got too big for their britches. Their quality has gone downhill too! Time to move on. </p>

<p>Sony, the company that was. Is it Japan's Polaroid? </p>

[peterblaise]

<p>.</p>

<p>Earlier: "... <em>I was waiting for a full frame digital so my lenses would have the same perspective</em> [sic] ..."</p>

<p>You mean "angle of view". "Perspective" is a comment on where YOU stand, not how much of your view is captured or cropped, but I understand what you mean.</p>

<p>I agree - I have put off DSLRs, waiting for an Alpha full frame, too.</p>

<p>Earlier: "... <em>I'd already have bought the A900 if they would have priced it in the low $2,000s where it was supposed to sell when first announced</em> ..."</p>

<p>Me, too. I, also. AND I might have bought it already if they hadn't left off:<br>

- the Minolta in-camera flash with wireless control of remote accessory flashes.<br>

- the articulating LCD from the Sony Cyber-shot DSC-R1!<br>

- the intelligent live preview of the Sony Alpha DSLR-A350.<br>

- the direct input, direct readout knobs of the Minolta Alpha 507si/600si/650si/9/7 (and as on the Panasonic G1 and the Canon G10 and ...).<br>

- in-camera re-JPGing of Raw to apply in-camera effects post-capture, such as various DRO dynamic range optimization and other settings.<br>

- video, because by the time the camera came out, the market had moved, so this reveals Sony's inability to bring contemporaneous products to market.</p>

<p>Earlier: "... <em>the USA ... Sony set the price at $3,000 here, $2,400, thirty miles away from me in Canada</em> ..."</p>

<p>Heck, for $3,000 WITH all the missing items, maybe I'd buy it without hesitation, but $2,000 sounds like an appropriate price for their stripper model as announced. In Canada, it's probably appropriately priced at $2,400, and we probably have to think in devalued Bush-dollars anyway. The Nikon DX3 24 megapixel full-frame at $8,000 certainly helps support Sony's $3,000 decision, though.</p>

<p>But, yes, Sony pricing policies governing the resale of their Alpha photography gear seem severe and counter productive, especially when I see their Samsung-built DVD/VCRs selling for cheap, cheap, cheap.</p>

<p>Earlier: "... <em>I got the first Sony color TV ... Every TV I've bought since has been Sony, almost 40 years worth. I have Sony DVD players, Sony CD players, Sony VHS players, Sony Stereo Receivers, Sony portable radios (showing my age) and Sony Laptops. That is it for Sony. They got too big for their britches. Their quality has gone downhill too! Time to move on</em> ..."</p>

<p>Oh, so you haven't looked inside to see SAMSUNG as one of their "your name here" suppliers yet?</p>

<p>==</p>

<p>So, I'm building a decision matrix and reading every review and owner's instruction manual, and trying to handle and actually USE each of the following cameras, and bring CF or SD cards home with actual pictures to play with and print, trying to decide if ANY of them are ready for sale to me and my partner, or if we wait.</p>

<p>For me only:</p>

<p>- <strong>Sony Alpha DSLR-A900</strong> for it's Alpha-lens mount, full frame capture, 100% viewfinder, and 24 megapixels.</p>

<p>- <strong>Sony Alpha DSLR-A700</strong> for it's Alpha-lens mount, excellent control set, 12 megapixels, the advantage of "effective" focal length increase without larger lenses due to 2/3-frame capture, but this hardly comes into play when comparing to the full-frame 24 megapixel A900. Alternatively, a used <strong>Konica Minolta Alpha/Dynax/Maxxum 7D</strong> at 6 megapixels, but at least it still has knobs and two dials.</p>

<p>For my partner and for me:</p>

<p>- <strong>Sony Alpha DSLR-A350</strong> for it's live preview - my partner likes to use the back LCD to see how the picture will look as a picture - and for it's Alpha-lens mount, 14 megapixel capture, and the advantage of "effective" focal length due to 2/3-frame capture, though in comparison to the full-frame 24 megapixel full frame, this hardly registers anymore. But, I hate the loss of twin control dials since I'm used to having the back one adjust exposure compensation, and the front one adjust program shift so I can have Aperture or Shutter priority on demand all the time in Program mode. How do you all live with one dial? Alternatively, I can pick up a used <strong>Konica Minolta Alpha/Dynax/Maxxum 5D/Sweet</strong> at 6 megapixels or a <strong>Sony Alpha DSLR-A100</strong> at 10 megapixels, but without live preview, these would be holdover cameras for me.</p>

<p>- <strong>Panasonic Lumix DMC-G1</strong> for it's small size and 1/2-frame capture and 12 megapixels (both exactly 1/2 of the 3-times more expensive A900, by the way!), for it's live preview for my partner, for it's total information in the viewfinder and direct input and direct readout knobs for me. Drawbacks? It takes two lenses to superzoom from wide to telephoto, and no "normal" fast lens at the moment, and no use of legacy Alpha lenses, though it would let me adapt my Minolta SR/MC/MD/X-600 lenses to 1/2-frame capture, and that would be a nice opportunity to explore.</p>

<p>I'd hate to think I'll get two - the <strong>Panasonic</strong> for my partner (and for my Minolta manual focus lenses) and an <strong>Alpha</strong> for me (and maybe for my partner if it has live preview) ... oh heck, why not?</p>

<p>==</p>

<p>Anyway, what was the subject again? Oh, I remember:</p>

<p><em>How is the Bushwhacking of the economy effecting our photography, especially through the vehicle of our main supplier, Sony</em>?</p>

<p>.</p>

[bill_caulfeild_browne]

<p>Tom and Peter....beg, borrow or steal (temporarily only, please!) an A900, put a high quality lens on it and take few shots of detailed subjects. When you see the resolution, $3000 will not seem like rip-off!<br>

And for the record, this camera has impressed me as a confirmed MFDB (Phase P45+) user. <br>

Bill</p>

[john schroeder]

<p>Does this mean an end to Betamax and minidisks players.</p>

[bill_tuthill]

<p>Aha! This thread became more interesting than its title made it sound. I'm sick of layoff stories.<br>

Trouble with the Panasonic G1 is that the 45-200 (90-400 equiv) lens is not very good<br>

Trouble with the A900 is that not many existing lenses are good enough to keep up with its sensor. Maybe a $2000 Leica lens, with mount alteration, would be good enough. But let's face it, most (not all) Minolta lenses were crap.<br>

I see a body-only A100 for $325 used. Is it worth paying more for an A200? I don't think live preview would be useful. Wireless flash sounded good, but in practice it was too unreliable for production use. E.g. I'd never take the chance on it at a wedding.</p>

 

[ricardovaste]

<p>Bill, you need to pick up some good Minolta glass. If you know what to buy, the majority of them are very good. The A200 does not have live view. If you want MLU/depth of fiew preview, go for the A100, otherwise the A200 will be quicker to use and has a slightly cleaner sensor.</p>