Three weeks after its earnings announcement estimated 5,000 employees would be cut globally, Sony Electronics revealed plans to shut down 20 stores in the United States, including its Century City location.
The store closures and downsizing are part of Sony Electronics’ restructuring plans and an attempt to “maintain its competitiveness in an evolving consumer electronics market.”
Total staff at Sony Electronics is expected to be cut by one-third before the end of 2014, impacting about 1,000 employees across the company’s sites.
The closure of the 20 U.S. stores are part of an effort “to further streamline costs and continue focus on existing partner relations,” a statement released by Sony Electronics stated.
“While these moves were extremely tough, they were absolutely necessary to position us in the best possible place for future growth,” Sony Electronics president and COO Mike Fasulo stated. “I am entirely confident in our ability to turn the business around, in achieving our preferred future, and continue building on our flawless commitment to customer loyalty through the complete entertainment experience only Sony can offer.”
The Sony Electronics store at Westfield Century City is currently located in between Banana Republic and Hollister Co. and diagonally across from Bloomingdales.
Only 11 Sony stores will remain open, including two in Southern California: at The Americana at Brand in Glendale and South Coast Plaza in Costa Mesa.
Two other Southern California locations are set to be shut down as well, including Sony Electronics stores at outlet malls in Camarillo and San Diego.
Sony Electronics stated it plans to focus on promoting premium products, such as its 4K lineup of televisions.
“The company will place an increased focus on its premium products – including its digital imaging line, high-resolution audio, and full suite of professional solutions – while leveraging its strengths in hardware, content and gaming,” the company stated.