Author Topic: Another 1150 Americans Out of Work--Sony and DST  (Read 796 times)

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Offline larsonstdoc

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Another 1150 Americans Out of Work--Sony and DST
« on: February 01, 2010, 10:12:13 pm »

DST Systems Inc. to cut 7 percent of workforce
About 700 DST Systems employees, likely many of them in Kansas City, can expect to lose work under a company-wide workforce reduction the Kansas City-based company announced this afternoon.
DST has about 10,000 employees in total and historically has employed about 40 percent of them in Kansas City. The most recent report from the company said it had 10,900 employees, including 4,500 in Kansas City at the end of 2008.
CEO Tom McDonnell would not provide details about the cutbacks when contacted after the announcement.
He and other company officials will discuss their outlook with analysts tomorrow, but McDonnell said not to expect any details about Kansas City layoffs.
DST’s announcement blamed “the extended economic downturn” and its impact on the financial services industry. DST provides recordkeeping and other services particularly to the mutual fund industry.
The layoff announcement came in DST’s fourth-quarter financial report in which it said earnings fell 17 percent from the same quarter a year earlier and remained about the same for all of 2009.
The company earned $58.8 million in the fourth quarter, or $1.18 per share, compared with $70.6 million, or $1.41, a year earlier.
Profits in 2009 were $241.6 million, or $4.84 a share, compared with $242.9 million, or $4.21 a share.

Sony Pictures to Lay off 450 as DVD Sales Fall
Sony Pictures to lay off 450 people, close 100 open positions as DVD sales fall
LOS ANGELES February 1, 2010 (AP) The Associated Press
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Sony Pictures Entertainment Inc., the studio behind the "Spider-Man" movie franchise, is laying off about 450 people and eliminating 100 open positions to cope with declining DVD sales.

The layoffs represent about a 6.5 percent reduction in the 6,800-strong work force at Sony Pictures, which released the Michael Jackson documentary "This Is It" and cataclysmic "2012" late last year. The studio also recently pushed back the release of "Spider-Man 4" by a year until 2012.

Most of the cuts at the studio, which is based in Culver City, will occur by the first week of March and will be in the home entertainment and information-technology units in the United States.

It's the second time in a year for the subsidiary of Japan's Sony Corp. to cut back.

Last March, it laid off nearly 250 people and eliminated nearly 100 open positions. That followed a move in October 2008 to reduce overtime, travel and executive benefits.

Staff were told of the latest cuts in a memo Monday and through videos by the studio co-chairs on an employee Web site.

"Our industry is affected by two things: It's affected by the economy, of course, and it's affected by technology," co-chair Amy Pascal says in the video. "Over the last two years, it's changed people's DVD buying habits, which has had a huge effect on our company and the industry at large."

The home video market is crucial for studios because that is where they recoup much of the cost of producing movies. Yet the market has been sagging as people refrain from adding to their already well-stocked home collections and turn to rentals, which are far less profitable for Hollywood.

U.S. home video revenue fell 5 percent in 2009 to $20 billion, according to the Digital Entertainment Group, an industry association of studios and electronics firms.

DVD rental and purchase revenues dropped 11 percent to $16.4 billion, the group said. That overwhelmed a 67 percent gain in Blu-ray disc spending to $1.5 billion and a 31 percent gain in online and video-on-demand revenues to $2.1 billion.