Sony will cut around 10,000 jobs and shut a number of plants around the world in a bid to cut operating costs and boost profits.
It will also undertake an asset sell-off, which could raise more than $1bn (£588m), although the cost of restructuring means Sony will post a loss this year.
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The new cuts follow a redundancy programme that has already seen 20,000 jobs go over three years.
Sony said the changes would be made over the next two financial years, up to March 2007.
The cuts were announced by Sony’s new chief executive, Howard Stringer, a Welshman and the first non-Japanese head of the company.
Stringer said Sony and its competitors were facing increasing pressure in the marketplace and had to make a further assault on its cost base.
Sony is slashing manufacturing in traditional TV production, increasing investment in LCD TV production and other new-screen technologies, and boosting expenditure on new semiconductor designs.