As a part of the restructuring plan, Sony plans to stop producing PC CD-ROM drive in March next year. It is understood that, Sony Optiarc will stop production of PC CD-ROM drive, and reduce employees in a factory in Atsugi, Japan, and in Malaysia- at least most of the 390 people.
Sony Optiarc is a joint venture founded in 2006 by Sony and NEC, and two years later it became Sony’s wholly owned subsidiary. Due to weakness in the PC market and facing fierce competition of foreign rivals, Sony Optiarc outstanding achievement has always not been good. Kazuo Hirai, Sony’s new president made a recovery plan in April, which bets the future of the company on the Xperia smart phones and other mobile devices, games and digital imaging business while sets foot in new business including medical devices.
Kazuo Hirai also promised to lay off 10,000 people – accounted for 6% of the total number of employees worldwide, and slashed the cost of the TV business unit. In the past 10 years, Sony TV business unit accumulated losses of approximately $12 billion USD. Earlier this month Sony cut its expected operating profit for this fiscal year, including sales expected on main products such as game master PSP and PS Vita. Since the announcement of the recovery plan, Sony’s stock has shrunk by about 40%.