Sony Group Corp's (NYSE:SONY) co-founder Akio Morita once in an interview delivered a scathing critique of corporate leaders who prioritize quarterly profits over the long-term health of their companies.

What Happened:  He spoke about the common practice of treating businesses as commodities rather than communities of people.

"A company is just like a family, like a home. We are working together, and this group of people working in the same direction should not be treated just like a commodity," he stated.

The legendary co-founder expressed concern over how executives often make drastic cuts during economic downturns, such as mass layoffs, to protect profits.

"Recession was not caused by these employees," he said, adding, "Yet, these employees are fired, losing business, still management stays to keep its profit. I am wondering, where are the human rights of these employees?"

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Morita also criticized the practice of new management writing off previous losses to make themselves look good while avoiding investments in the company's long-term future.

Sony co-founder Akio Morita on managment who run companies for the short term:pic.twitter.com/QqeXY8M94J

— Jon Erlichman (@JonErlichman) August 29, 2024

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Why It Matters: Morita's passing in 1999 marked the end of an era for Sony Corp. and the Japanese business community.

A Harris poll conducted a year before his passing, revealed that Sony ranked as the top brand among American consumers, surpassing iconic U.S. companies such as General Electric and Coca-Cola.

Under Morita's leadership, Sony made history as the first Japanese company to list its stock in the U.S. in 1961 and became a trailblazer again in 1972 by establishing one of the first Japanese-owned factories on American soil.

Sony currently has a market cap of $126.28 billion, making it the world's 127th most valuable company. The company's stock experienced a 13.1% increase in 2024, according to data from Benzinga Pro.

Japanese corporate culture values lifetime employment. Companies prioritize job security and employee loyalty to ensure stability. This contrasts with the U.S., where flexibility and frequent job changes are common.

Japanese firms also avoid mergers and acquisitions. Instead, they focus on organic growth and long-term relationships over quick profits.

Here is a table summarizing some of the largest tech layoffs over the past five years, including notable companies and the number of employees affected:

Last year, Sony Interactive Entertainment also announced plans to reduce its PlayStation workforce by approximately 900 employees, representing 8% of its global staff.