After suffering from loss for almost 4 years in a row, Sony Corp took a sigh of relief when the new CEO Kazuo Hirai took the seat. But regardless of loosing a little bit less every week, company is still looking for more ways of cutting the fat. The latest move in the list of those initiatives is to sell the house. Yep, the company is selling it’s Madison Avenue located building to a real estate consortium headed by ‘The Chetrit Group.’ The 37 story building is being sold for $1.1 billion.
It is a well known fact that the company was facing serious losses in the business from a long time. The TV sales of the company were going almost on the ground and it was also slipping down in the other markets due to extensive competition (some of those markets include Mobile, Tablets and Laptops). CEO Kazuo Hirai had already cutted down the production of it’s Bravia TVs due to less sales. He also said that now the company has plans of focusing more on emerging markets like Smartphones and Tablets.
The company is also planning to cut jobs of it’s 10,000 employees and may also sell it’s Tokyo located building, because the most loss company has faced in Japan. The primary reason behind that loss is the poor economic condition of the country. The Tokyo located building can provide another $1.14 billion to the company.
The company said in a statement that it is taking a number of steps in order to save money for future and selling the assets is also one of those steps. So the company is selling it’s 550 Madison Ave located building. In the meantime company is also try to control it’s cash outflows and manage inflows for coming back on the track in the era of this extensive competition. After a comeback, company will be in the more stable condition.
After selling the Madison Ave located building and paying the debts, company will be able to save around $770 million for it’s future business deals and operations. The company is looking to expand in competitive markets like mobile devices and tablet pcs, and obviously that requires money. The deal between both parties will end on March 31, 2012. However, company has signed a lease contract with The Chetrit Group, according to which Sony’s offices will remain inside the building on lease for 3 years.