TOKYO (Reuters) - Shares in Sony Corp fell 1 percent on Wednesday after the company said it aims to cut $1.1 billion in costs in its struggling electronics operations through job cuts and other restructuring measures.
SONY (JP6758.TK) the maker of Bravia flat TVs and PlayStation 3 videogame consoles, said on Tuesday it would slash 16,000 jobs, scale back investment and pull out of unprofitable businesses as the financial crisis ravages demand for its electronics products.
But the share fall, against a rise in the overall market, underlines investors' concerns that the steps are unlikely to be enough to streamline a sprawling empire that ranges from semiconductors to movies and insurance.
"Our first impression was somewhat negative, as this is not a major restructuring which will fundamentally change the business model," Credit Suisse analyst Koya Tabata said in a report to clients.
Sony, along with other electronics makers, also faces slowing economies around the world that are hurting sales in the critical Christmas shopping season, as well as a strong yen that cuts into the value of its profits and makes its products less competitive in overseas markets.
Sony shares were down 1 percent at 1,877 yen as of 0013 GMT (7:13 p.m. EST), against a 0.6 percent rise in the benchmark Nikkei average.
(Reporting by Sachi Izumi)
