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Amidst the Circuit City bankruptcy and Microsoft layoffs, not to mention poor sales numbers for both the PS3 and PSP, Sony has found the need to reform.  And with two warnings about falling profits coming less than three months apart it’s not a moment too soon.

Projecting a potential annual loss of $2.9 billion, their numbers are a far cry from the average $2.2 billion they usually record for annual profits.  Sony CEO Howard Stringer blames a variety of things for the steep decline.  Largely, the issues seem due to a falling Japanese Yen, department rivalries, and out-of-control costs, but the fact that Sony has yet to hit the software market certainly has some impact.

Considering just last month Sony announced thousands of layoffs and plans to close at least 57 factories world-wide, the company seems to be limping in an already poorly convalescing economy.  Will plans to streamline, be more “Johnny-on-the-spot” with innovation and hitting the market early be enough to stave off the riptide taking down so many tech companies right now?

Additional plans include an attempt to narrow the focus of Sony who is in massive competition on the music front, the video game front, as well as the TV front, improve supply-chain management, and scaling back production in Japan.  Expect to see more outsourcing and contract manufacturing of lower-end items.

Source: [Press Release]