Audio Video News

The third corporate makeover in three years begins April 1 at Sony Corporation. The electronics and media giant announced March 30 that it will create a new top-level management group to be called the "Global Hub," with responsibility for coordinating all of Sony's vast empire, including entertainment, electronics, games, and financial and Internet services. "We'd like to make it a highly efficient group headquarters," explained Sony chairman Nobuyuki Idei.

All Sony electronics divisions, including computers, television equipment, and other consumer electronics will be supervised by one management group, according to company president Kunitake Ando. He emphasized that electronics is still Sony's core business, reiterating the company mantra, that "without growth in the electronics business we cannot achieve growth of the other businesses."

Reorganization has become an annual ritual at Sony, whose disparate elements are sometimes in conflict with each other. The company is the world's only electronics manufacturer with a serious interest in the entertainment industry. Sony Corporation is the parent company of Sony Music and Sony Pictures Entertainment, but also manufactures computers and audio/video gear that can be used to illegally copy music and movies. Sony also makes professional equipment for the television and film industries.

The management shuffle is taking place during a financial lull. Two months ago, Sony revised its net income projection for 2001 from approximately $82 million to $40.9 million, according to reports from Tokyo. In late March, the company decided to downsize audio equipment maker Aiwa Company, of which Sony is a majority owner. Aiwa will dismiss half its work force and close all but one of its nine factories.