Sony’s projected net losses for the just-finished fiscal year went from bad to worse today. The electronics giant announced that it would be taking a net loss of ¥520 billion ($6.4 billion) for the year ended March 31, compared to its previously announced forecast of ¥220 billion ($2.7 billion).
The extra $3.7 billion in red ink is being tacked on to the company’s after-tax earnings due primarily to valuation changes of its deferred tax assets. As a result, the company’s pre-tax operating income and sales projections are remaining unchanged.
The announcement comes just days after Japanese news outlet Nikkei reported that Sony is planning to lay off 10,000 employees–about 6 percent of its workforce–by the end of the year. Newly appointed Sony CEO Kaz Hirai is expected to detail the company’s strategy for the future in a presentation for investors later this week. After working his way up through Sony’s gaming division, Hirai was named the successor of former CEO Howard Stringer and took the reins for the electronics giant on April 1.