Mighty Sony is in a bit of trouble. The company was forced to significantly slash its revenue forecast and earlier this week it announced that it would sell its VAIO PC business. Sony’s operating income for Q3 was $860 million, net profit was $257 million and sales totalled $23 billion.

The company now says it will lay off 5,000 workers by the end of the next financial year. Japan will be hardest hit it seems, with 1,500 layoffs. Most of the cuts will be in the TV and PC divisions.

Sony’s gaming business seems to be doing ok and the PlayStation 4 is off to a good start, but so is its arch nemesis from Redmond.

Sony’s mobile business is in the green, too. It ended the quarter with a revenue increase of 44.8 percent year-on-year. Sony says the good results were made possible by a significant increase in smartphone sales. 

The home entertainment division also grew year-on-year, with a 24.8 percent revenue gain.