Early retirement?! Oh noooo...
It turns out that Mrs. Nakayama is very astute. Former Sony executives and current employees blame the fall of the firm on the loss of brainpower and good employees during the reign of Nobuyuki Idei, from 1999 to 2005. Idei was the first Sony CEO to rise up entirely from a management background and in the "Who-killed Sony?" genre of books and articles, he is regularly the prime suspect.
A middle manager at Sony, on background, recalls the Idei age.
"Idei decided to streamline the company and do massive restructuring. When we say, 'restructure' in Japanese-we really mean get rid of people. He put together an early retirement plan and strongly encouraged people to use it. Well, that didn't generate a lot of good feelings. When a company starts promoting early retirement, most people take that as a sign to get out while they still can. And many did. Maybe the idea was that by getting rid of the middle aged and older employees they'd encourage innovation and bring in some young blood. The effect was more like shooting yourself in the foot."
According to the Sony veteran, the middle-aged engineers and technicians that left were the same ones that brought Sony to greatness. They left behind a younger generation that was insecure, afraid of failure, and only willing to work with technology already in place—not build from the ground up.
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