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Sony: Pictures hack cost $15M; 2,100 smartphone job cuts coming

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Last year’s massive hack on Sony Pictures Entertainment, which the U.S. administration has blamed on North Korea, cost the Sony division around $15 million.

In [company]Sony[/company]’s results (PDF) for the third quarter of its fiscal year (the fourth quarter of 2014 proper), the company had to provide forecasted rather than actual results for the movie unit, because the cyberattack so severely disrupted its network and infrastructure.

The Japanese company placed the cost for investigating and remediating the attack at approximately $15 million, a hit that it will place on its books for the current quarter. It said the impact on its full-year results “will not be material.”

The quarterly results also showed a year-on-year 28.7 percent boost in sales and operating revenue for Sony’s smartphone unit, and the division’s operating profit for the quarter was up 46 percent, reaching a modest $76 million.

However, the smartphone unit is still heading for a bigger-than-anticipated full-year operating loss of 215 billion yen ($1.83 billion), and Sony also reiterated its plan to cut a couple thousand jobs in its smartphone division — now more specifically laid out as 2,100 jobs — by the end of March 2016. Previous reports have indicated these job losses will mostly take place in China and Europe.

2 Responses to “Sony: Pictures hack cost $15M; 2,100 smartphone job cuts coming”

  1. I question the use of the phrase “the company had to provide.” While keeping loss estimates negligible for a conglomerate like Sony, they are not subject to the same numbers hoops as their competitors for at least one quarter. Some companies smaller than Sony might occasionally pay more for the opportunity. I’m not suggesting Sony needs the wiggle room, but I don’t see them placed at a disadvantage with regard to earnings reporting.