Sony started as a radio repair shop in Tokyo, Japan. Its former name was Tsushin Kogyo K.K. The company has primarily found success in the audio category before venturing into other consumer electronic products. However, today, a report says that it’s planning to shut down an audio plant in Malaysia that may result in the loss of several jobs.
According to Nikkei Asia, Sony will club two factories in Malaysia by September 2021. And close one of the plants entirely by March 2022. Precisely, it will shut down an Audio product manufacturing plant in Penang State and shift it to Kuala Lumpur. The audio plant primarily makes headphones and other home audio equipment.
The new development is reportedly a part of the rationalizing and review process of Sony. For the unaware, Sony is an established brand in imagine solutions(camera sensors), Audio(headphones, speakers, etc.), and smartphones. In fact, the company’s camera sensors are widely preferred by many vendors occasional dips aside. Previously, back in March, the company merged imaging solutions, Audio, and Mobile communications into Sony Electronics Corporation.
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Coming back, the Audio product manufacturing will henceforth continue from the TV manufacturing plant at Kuala Lumpur. As a result of this merger, the report says that many of the 3,600 employees at the old factory(Penang) will likely be laid off(discharged). Further, one more reason for the development is said to be the company’s dull performance(a 23% decrease) in 2020-21 in the electronics segment due to COVID-19.
This, in addition to added competition, could also be the reason for its products not making huge numbers for Sony. Besides, an earlier report in March said that it’s CMOS image sensor production was unaffected by the Pandemic. Anyway, Sony’s year-ending(Mar 2021) operating profit prediction in Electronics is 67 billion yen ($644 million).
That said, although some employees might be transferred to the new base, the closure will affect the neighboring livelihood and end the three-decades-old(since 1988) run. That’s not all, as Sony also plans to shut another three-decades-old audio and TV factory in Brazil.
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