Things are looking bad for Sony early on in 2009. Last week we heard speculation that, for the first time in their corporate history, Sony would be posting a loss. Estimates last week had the number at around $1.1 billion in the red. It looks as though those numbers were too conservative, as we learn today that the total losses for 2008 reached $2.9 billion, which the company attributes to weakening currency and decreased demand.

You may also remember that in early December Sony announced that they would be shrinking their workforce by 5%, or approximately 8,000 jobs, due to these anticipated losses across almost all aspects of their business. At the time, we were told by Sony to wait for the details on which divisions would be receiving the pink slips. Today we got those details.

Sony has revealed that television and battery manufacturing will bear the brunt of the downsizing. Worldwide, Sony plans to cut television manufacturing by 30%, with one factory in Japan completely stopping the design and production of TVs. Sony has also outlined their intention of restructuring their existing battery and small-to-mid sized LCD operations.

Once again, we see evidence that the global economy is still on a downward track. One can only hope that the recent trend of corporate restructuring will lead to stronger institutions, and that these layoffs won't be forever. Although I guess it's still a bit early to be that optimistic.

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