Sony Exits PC Market, Cuts 5,000 Jobs

Sony is exiting the PC business and plans to sell off its Vaio personal computer division and is cutting 5,000 jobs. Company CEO Kazuo Harai is also splitting off Sony's TV division into a separate business in hopes of turning around a ten year US$7.8 billion loss.

Sony is bailing out of the PC industrySony is bailing out of the PC industry

While Sony is letting its PC business go completely, that isn't the case with its television division. The company's TV business will operate as a wholly owned subsidiary, which will give it enough autonomy to react quicker to the television market.

"I think we are heading in the right direction, and by making it a separate company we will speed decision-making up," Mr. Harai said. "As for the future, there are many possibilities, and not just for our TV business."

Dumping its 17 year old Vaio division underscores just how difficult the PC market has become. Sales have been declining world wide for years while tablet sales are on the rise.

Much of the growing tablet market belongs to Apple and its iPad, and that's eating into PC sales. Android OS-based devices are playing a part in that erosion, too, adding to overall PC sales losses.

For Sony, the PC business has become a losing proposition, and to a degree so has the television market. Considering Sony is revamping its TV business and dumping PCs, it says a lot about where the company sees the future of personal electronics.