Sony Takes Aiwa Private; Hitachi Cuts

摘要

Tokyo―Japan's two biggest electronics companies are taking the ax to their subsidiaries, underlining how the global technology slowdown is forcing major restructuring in Japan. Sony Corp. said it will take Aiwa Co. private, raising its stake to 100% from 61%. Aiwa has already halved its work force to 4,800 and said it will cut at least another 400 employees. It also may shut down its remaining plants in Malaysia and Indonesia, which employ about 3,000 people, although the plants will stay open for now, said Aiwa President Masayoshi Morimoto. Meanwhile, Hitachi Ltd. has announced a new round of cuts along with its largest-ever loss. Hitachi now expects a net loss of 480 billion yen ($3.57 billion) for the year ending March 31, compared with net profit of 104.3 billion yen in the previous year, as the company took a beating in semiconductors, telecommunications equipment and other areas hit by the bursting of the tech bubble. Analysts and investors had been expecting a revision, but not of this extent.