By Howard Greninger
TERRE HAUTE — Sony is moving all of its DVD production to its Sony DADC facility in Terre Haute, a measure the company says will better manage costs and “achieve greater operating efficiencies in its supply chain network.”
The Terre Haute plant will now manufacture all of Sony’s DVDs.
The move will result in the layoff of 160 of its 571 employees at Sony’s Pittman, N.J., facility. Those layoffs are effective April 30.
Profits from on-demand and pay-per-view movies plus downloadable music have cut into profits at Sony and other manufacturers.
“In light of the continued challenges posed by economic conditions and the current competitive landscape, Sony DADC is taking additional steps to manage costs and achieve greater operating efficiencies in its supply chain network,” the company said in a statement.
The New Jersey plant will continue to manufacture CDs and serve as a regional distribution and customer service center.
The move will not translate into additional jobs in Terre Haute, as the DVD production will be absorbed by the
Terre Haute plant’s existing work force, a Sony
spokesperson said.
Sony in October laid off 35 workers from the Terre Haute plant, about 2.5 percent of its work force, to reduce production costs.
Sony DADC in Terre Haute manufactures DVDs, Blu-ray discs, CDs, CD-ROM and CD-video, PlayStation discs and UMD discs for PlayStation Portable, and also provides distribution, subscription and fulfillment services.
The Terre Haute site, which occupies about 1.3 million square feet, employs about 1,400 workers.
Sony first moved to Terre Haute in 1983, purchasing a former CBS facility. The company opened the first U.S. facility to manufacture CDs in September 1984.
