Sony to sell its VAIO business, spin out TV as a fully-owned subsidiary

Sony today announced a major restructure to reform its TV and PC business. Sony will sell off its VAIO PC business to Japan Industrial Partners Inc. (JIP) in a bid to concentrate on the smartphones and tablets business. Both companies have signed a memorandum of understanding confirming the intent to sell the PC business operated under the VAIO brand.

Sony expects to reach a conclusive agreement by end of next month and will “cease planning, design and development of PC products” while manufacturing and sales will also be discontinued after the launch of Spring 2014 lineup globally. Sony will however, continue to provide support and service to existing VAIO customers.

Sony also announced to split its TV business into a wholly-owned subsidiary that will enable them to reduce cost, faster decision-making and more importantly, return the business to profitability.

Sony also expects to reduce personnel by approximately 5,000 employees, including 1,500 in Japan and 3,500 internationally.