Wednesday, October 12, 2005

Microsoft, HP, Sony in Restructuring Mode

To combat growing competition from nimble players like Google, Yahoo, Oracle and Linux, Microsoft would reduce the number of business units from 7 to 3 with a president heading each unit. The plan is to speed up the decesion making process and organize the company around Windows, Office and Xbox

Sony is gearing up to handover 100 pink slips worldwide (7% of workforce) and close down 11 manufacturing plants by end 2007. This is done to revitalize its faltering electronic business. This excercise will save $1.8 billion.

Mark Hurd after Carly Fiorina has gone for restructuring by:

1. Stopping Digital Camera Business in Asia
2. Stop reselling Apple iPod
3. Out of total employee strength 151000, 14500 jobs have been slashed (10% of its workforce)

Lets see whether this will help them or not !!


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