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ImageSony Corp has also decided to freeze its workers' salaries for the year starting in April to improve profitability.

Reportedly, workers' bonuses will also be lowered to four months' pay from six months, and annual compensation for managers will be dropped 10 to 20 per cent through wage cuts and 35 to 40 per cent bonus reductions.

Due to the global economic downtown and the strength of the yen, Sony is expected to report a group operating loss of 260 billion yen ($2.65 billion) for the year ending March 31.