chris porco

To stem continued losses, Sony said Thursday there will be no pay increases for non-managerial employees this year.

Sony doesn't give automatic raises every year based on seniority--unlike many other Japanese companies--but instead awards them based on responsibility and performance, according to Reuters. chris porco

It's the first time Sony has ever made such a move, but the company's financial circumstances give it few options. Sony is predicting an operating loss of $2.9 billion for the current financial year ending March 31, the electronics giant's first annual loss in 14 years.

It has already resorted to closing several factories, laying off 16,000 full-time and contract workers, cutting salaries for managers, and trimming bonuses.

Sony is just one of many Japanese electronics companies that have been hurt by the global economic downturn and a stronger-than-expected yen.
chris porco