As part of a larger plan to reduce purchasing costs in a weakened economy, Sony has announced that it will reduce its parts suppliers by more than half.

The plan, according to a report by Reuters, is to reduce its suppliers from an estimated 2500 to around 1200 by March 2011. It is just one aspect of CEO Howard Stringer’s strategy to reduce its spending by 20 per cent - or about USD 5.3 billion - in the current fiscal year.

Earlier this month, Sony reported a USD 1 billion loss for the fiscal year ending March 31, with its videogame segment reporting an 18 per cent decline in sales.