Sony is to cut 8,000 jobs - 4% of its global workforce - as well as close 10% of its manufacturing sites and slash investments by 30% to counter the effects of the economic downturn.
"These initiatives are in response to the sudden and rapid changes in the global economic environment," the company said.
The Japanese electronics maker, which has also been hit by a stronger yen, aims to cut costs by $1.1bn a year.
It said the jobs would be cut in the next 18 months in its electronics division, but did not say which countries would be affected.
The news came as Japan revealed its economy had shrunk at an annual rate of 1.8% in the quarter, compared with its original estimate of 0.4%, the BBC reports.
Electronics firms have been hit particularly hard by falling prices, intense competition and reduced consumer spending.