Sony’s failure in the PC market has led to big losses for the electronics giant, which must now cut thousands of jobs to stay alive.

Reports indicate Sony will book a $US1.08 billion annual loss this year, a large part of which has been link to the ongoing lack of success for its ‘Vaio’ laptops and PCs.

The company that was once on the top of the electronic heap is struggling to stay relevant, insiders say, holding onto its Bravia television line and the PlayStation games console while ditching the Vaio brand.

Sony says selling its PC brand save close to $1 billion per year from early 2015, it has allegedly been sold to Japan Industrial Partners (JIP) for a figure between 40 billion yen and 50 billion yen ($547 million).

Recent statements say “drastic changes” are on the way, as the company has decided to focus on “its mobile product line-up on smartphones and tablets and to transfer its PC business to a new company established by JIP that will enable [its] continuation.”

With the sale of Vaio and other internal restructuring, it is expected about 1,500 jobs will be cuts form offices in Japan and 3,500 overseas.

There is a silver lining for several hundred workers who will likely be re-hired by JIP, while Sony says it will “explore opportunities for other employees to be transferred to other businesses within the Sony Group.”

Sony chief Kazuo Hirai appears to be trying to right the ship without losing its broad range of cargo.

Sony will keep its television line, despite less-than-stellar sales and a push to sell from shareholders. The company has also retained its entertainment arm, which includes a Hollywood film studio.

The company has blamed many factors for its rough run, saying a poor earnings outlook, which reversed previous expectations of a 30 billion yen profit, restructuring expenses and planned assets sales “which were reconsidered” have all come together to knock down their bottom line.