The reduction of jobs will be implemented during the two years and it will run until March 2014, although the company has not mentioned any time frame.
Sony has sustained losses continuously four years in a row, and is unable to compete with its arch rivals such as Apple and Samsung, according to Nikkei newspaper.
The company expects JPY220bn ($2.7bn) net loss for this fiscal which could be the fourth straight annual loss for the company.
It is expected that the half of the job cuts will come from consolidating the firm’s chemicals and small and midsize LCD operations.
Last month, Sony said it reached a deal to dispose its chemical products business to the Development Bank of Japan while in another deal it divested its its small- to medium-sized liquid crystal display operations to Japan Display, a joint venture backed by the Japanese government, Sony, Toshiba and Hitachi.
Sony said these two deals will pare nearly 5,000 jobs from the company.
The annexation of jobs is expected to come from its television division, where Sony is expected to post loss for an eighth-straight year.
This will be second major job cut, since 2008, when the company has axed 16,000 jobs and closed a number of factories.
As of March 2011, the company has an employee strength of 168,200 worldwide and the latest job cut may come from its moving businesses, which is not the core business of the company.
