Sony First Cuts Workforce and Now Freezes Salaries

by Wesley Roberts on March 19, 2009

Sony today announced a drastic measure in an effort to cut costs that involves freezing workers’ salaries this year. Sony’s raises usually come to employee’s based on their performance and role – and generally how well they did in the previous year towards the companies success.

“This time we decided to keep the workers’ salaries unchanged,” Sony spokeswoman Mami Imada said. Back in December of 2008, Sony cut 8,000 jobs from the company or 4% of its global work force.

Sony may not be the only tech company in Japan making these changes. NEC, Hitachi, and Toshiba which are all based out of Japan may too consider freezing salaries in an effort to save capital in the slow technology market.

In Japan, like the rest of the world, unemployment rates are rising with the technology sector being the worst hit.

Sony’s stock was down nearly 1% in afternoon trading to $20.67 a share. It’s near the 52-week low of the stock – $15.64.