Sony under fire for operating losses, hires Bain to narrow down costs by USD100 million
Sony Entertainment has hired consultancy firm Bain & Company to help pinpoint over USD100 million in cost cuts through layoffs and other means.
News of Sony's latest move came after the Japanese electronics and entertainment conglomerate has been reportedly under fire from hedge fund manager Daniel Loeb, Reuters sources said.
Loeb owns 7% of Sony through his Third Point hedge fund.
According to the report, activist investor Loeb wrote to Sony Corp. chief executive officer Kazuo Hirai earlier this year to encourage a more disciplined management approach to the corporation. Loeb wanted Sony to improve the profitability of its film unit.
The studio has since replaced its film marketing chief and narrowed down film marketing costs, Reuters said.
In October, Sony Pictures reported that it incurred an operating loss of USD181 million for the second quarter. Sources knowledgeable on the matter said that it was partly due to the underperformance of Sony's summer film "White House Down".
The company's box office performance has recently improved with hits like "Cloudy with a Chance of Meatballs 2", Reuters said.
Based on its latest financial report for the fiscal year ended March 2013, Sony Corp. has USD151.131 billion total assets under management and an equity of USD28.523.