Sony's CEO Stringer ousts president Chubachi

27 February 2009

Sony Corp CEO Sir Howard Stringer ousted Dr Ryoji Chubachi as president and took control of the main electronics business as the electronics giant faces major losses.

The surprise move, which leaves Stringer firmly in control as Sony braces itself for its first operating loss for 14 years, mirrors executive shake-ups at other major corporations hit hard by the collapse in global demand for cars and consumer electronics.

Stringer, who already holds the positions of CEO and chairman, said the reorganisation "is designed to transform Sony into a more innovative, integrated and agile global company with its next generation of leadership firmly in place." He will assume the expanded role from 1 April even as Chubachi becomes chairman in charge of product safety, quality and environmental issues.

Stringer, a Welsh-born US citizen, became the first non- Japanese to head Sony when he was appointed in June 2005. Prior to joining Sony, Sir Howard had a distinguished 30-year career as a journalist, producer and executive at CBS Inc. Before joining the electronics maker in May 1997, Stringer was president of CBS Inc., where he stayed for three decades, and chief executive officer of media and technology company TELE-TV.

In a statement, Sony claimed the changes would "fundamentally reorganise the company's games and electronics business to improve profitability and strengthen competitiveness in the midst of the continued global economic crisis".

Reorganisation
Stringer announced the creation of two new business groups, headed by younger executives, to break down the "silos" that have prevented full integration of the company's hardware and software, and to devise "cool new products" that will appeal to digital-savvy young people around the world.