Sony has announced it plans to cut 8,000 jobs from its electronics business, as well as shut ten per cent of its manufacturing plants.

The company aims to generate cost savings of 100 billion yen ($1.1 billion) by March 2010, and follows the news that the Japanese economy has shrunk by 1.4 per cent in the last quarter.

“In order to stay competitive in the accelerating global network environment, we will always carefully review and make structural changes, if necessary, in order to further expand and strengthen the PlayStation business around the world,” a Sony spokesperson told MCV.

The 8,000 jobs marks five per cent of the company’s electronics business, and it is not yet known how much of the firm’s PlayStation business will be affected.

“These initiatives are in response to the sudden and rapid changes in the global economic environment," said Sony in a statement.

“Furthermore, Sony plans to realign domestic and overseas manufacturing sites, reallocate its workforce and reduce headcount.”