Sony will sell off its Vaio PC unit in a deal that will see the brand focusing primarily on Japanese markets. The company will also turn its television business into a subsidiary and cut 5,000 jobs worldwide.
In a statement, Sony explained that "drastic changes in the global PC industry" had led to its decision to drop the brand. Sony lost 22.8 percent of its market share in Europe, the Middle East and Africa in the final three months of 2013. The global PC market fell by 10 percent overall in 2013.
The Japanese firm said that it would concentrate on its mobile business, currently represented by its Xperia line-up of high-end, mid-range and budget Android smartphones and its tablets, which include the Xperia Tablet Z and S units. The company's mobile division increased its revenues by 45 percent year-on-year.
Sony is working on an agreement with Japan Industrial Partners (JIP) to sell its PC business. The negotiations for this deal are expected to be completed by the end of March. The company would initially target corporate buyers and consumers in Japan before considering further expansion into other markets, the statement said.
The cuts come as Sony looks to reduce its annual fixed costs – such as property and salaries – by 100 billion yen (£604m). Across Japan, 1,500 jobs will be cut, while a further 3,500 will be lost in other countries.
Sony will also be splitting its loss-making TV business into a separate wholly owned subsidiary by July 2014, following "unexpected factors" affecting sales. The company had expected that its TV division would return to profitability this year, but Sony said that this would no longer happen.
Sony said its customers would continue to receive customer service from employees being transferred to JIP.
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