Sony refutes cost-cutting reports

Electronics giant Sony has refuted claims that it is about to embark on further drastic cost-cutting measures to its global operation.

According to a report in The Times, the Japanese company is close to shutting certain major divisions and domestic factory operations in order to trim its costs.

The move is also part of so-called "sacred cow-slaying" measures which are designed to transform the company's long-entrenched business practices.

Sony recently announced that it intends to save around $1.1 billion (£757 million) in costs, including shedding 8,000 jobs, but insisted that it has no further restructuring plans.

"We do not plan to announce additional restructuring measures at this time," said Sony spokesman Atsuo Omagari. "We don't have any such plan."

Sony Computer Entertainment Europe (SCEE) president David Reeves told Dutch television network RTL in December that there will not be any personnel cutbacks in his division.

"As long as we plan prudently then I think we will be fine," he said. "We have a good business model.

"People will continue to buy the hardware, continue to buy the software. I'm convinced of it."