Sony President Chubachi to step down in April+

TOKYO, Feb. 27 Kyodo - Sony Corp. said Friday that President Ryoji Chubachi will step down from his post in April while Howard Stringer will double as both president and chairman to speed up restructuring to cope with dwindling demand for TVs and other products amid the global economic crisis.

Chubachi, who assumed the presidency in 2005, will become vice chairman in
charge of product quality and environmental issues, Sony said while announcing
other changes to its top management team.
The personnel reshuffle was announced as the company is suffering from sluggish
sales of its mainstay liquid crystal display TVs and other electronics products
as well as the yen's steep appreciation. Sony is anticipating its largest-ever
operating loss of 260 billion yen for the current business year to March 31.
The Japanese electronics giant said it will ''drastically'' renew its
electronics and gaming operations through the management changes to boost
profitability and competitiveness.
Stringer, 67, will directly oversee the electronics business to enable faster
implementation of his strategic measures while putting a greater focus on
''networked'' electronics products, the firm said.
''Today in Sony, we have two distinct challenges,'' Stringer told a news
conference in Tokyo, referring to the weakening global economy and intensifying
competition in the electronics industry.
''We have been grappling with an intense competitive shift taking place in the
consumer electronic landscape,'' Stringer said.
Through the reorganization, Sony will transform itself into a more innovative,
integrated and agile global company with its next generation of leadership
firmly in place, he said.
The news about the reshuffle in Sony's leadership came as other major Japanese
companies such as Toyota Motor Corp. and Honda Motor Co. have announced plans
to replace their presidents following sharp downturns in their earnings amid
the deepening global economic slump.
As a key part of its structural change, Sony said it has formed two new
business groups -- the networked products and services group, which will cover
personal computers and new mobile products, and the new consumer products
group, which includes television and home audio businesses.
The company appointed Sony Computer Entertainment Inc. President Kazuo Hirai,
48, to double as the head of the networked products and services group while
naming Sony Executive Vice President Hiroshi Yoshioka, 56, who currently
oversees TV operations, as the head of the consumer products group.
''We must accelerate the introduction of innovative networked products and
service offerings,'' Stringer said.
He said the change in management is necessary to realize such an aim, a rapid
reduction in costs, a speedier supply of products and other renovations of the
firm ''swiftly and effectively.''
Asked why he will double as president, Stringer said he sees no need for
''another bureaucratic layer'' between him and those directly managing Sony's
key operations like the two newly formed groups.
Chubachi, 61, said at the same press conference that Sony is facing a tough
environment due not only to the global economic slump but also changes in
people's lifestyles and diversifying personal preferences.
''I believe it's best that a younger generation with new visions sets up a new
growth strategy,'' Chubachi said.
Sony racked up record-high group sales and net profit in fiscal 2007. But its
business took a sharp dive in the face of the economic slump and tough
competition from rival products including Apple Inc.'s iPod music players and
Nintendo Co.'s Wii game console.
Sony has announced plans to eliminate 16,000 jobs around the world and close
some factories as part of its restructuring measures.
==Kyodo
2009-02-27 22:51:04