Sony to freeze salaries to help recover losses

VAIO netbook maker Sony is the latest global technology sector firm to turn to workers to help out with financial woes.

VAIO netbook maker Sony is the latest global technology sector firm to turn to workers to help out with financial woes.

The global financial crisis and a strong Japanese currency is expected to push Sony to an operating loss of $2.9bn for the current financial year to 31 March, the Financial Times reports.

Sony has announced it will keep workers salaries at 2008 levels to help the company recover from losses due to falling demand for PCs and other electronic goods.

Managers' pay will drop by up to 20% through wage cuts and bonus reductions of up to 40%, while workers' bonuses will be reduced by about 30%.

Sony announced in December it will cut 8,000 jobs as well as close 10% of its manufacturing sites and slash investments by 30% to counter the effects of the economic downturn.

Last week, Hewlett-Packard announced temporary wage cuts of 10% for all US and Puerto Rico employees in its EDS business units.

The April wage cuts will "keep the organisation strong while increasing financial flexibility," HP said in a statement.

Hitachi, Toshiba and NEC also said last week they were considering similar cost cutting measures to help ride out the economic downturn.

In January, NEC announced it plans to cut 20,000 jobs worldwide as a result of the economic downturn.

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