Dive Brief:

• Japanese company Sony Corps. said Wednesday that it will be closing 20 of its 31 retail stores in the U.S. 
• The company's electronic unit, Sony Electronics, will be cutting 1,000 jobs around the same time of the closers.
• The reductions are part an initiative announced earlier this year to cut 3% of Sony's global staff, accounting for 5,000 positions lost around the world. 

Dive Insight:

These reductions, both nationally and internationally, are undoubtedly spurred by Sony's forecast for a $1.1 billion loss this year. With rising pressure from high-level competitors such as Apple and Samsung Electronics, Sony Electronics' CEO Mike Fasulo classified the cuts as "absolutely necessary." Only time will tell if Sony's tough business move -- not to mention the negative PR it's bound to generate -- will be rectified with future growth.