Los Angeles – Sony (NYSE: SNE) has announced plans to shutter one of its
CD manufacturing plants in New Jersey in March.

Some 300 employees will be laid
off from the plant in Pitman, N.J., while around 50 other employees may be
transferred within the company, the Associated Press reported.

"In light
of the current economic environment and challenges facing the physical media
industry, Sony DADC is taking additional steps to reduce cost from our supply
chain network in order to remain competitive," Lisa Gephardt, a spokeswoman
for Sony DADC, said in a statement.

Sony will consolidate CD manufacturing at a
plant in Indiana, where it also moved its DVD making business last year.

SoundScan reported that CD sales were down 20% in the U.S. last year.


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(DMW previous coverage)