Sony will also halt domestic production of cathode-ray tubes for television sets by the end of next year, the Nihon Keizai Shimbun, without citing sources.
The electronics' maker will announce its plans on 28 October when it reveals new structural reforms, the economic daily said.
Sony will slash the workforce by offering early retirement packages and will curb new hiring, it said.
The company intends to pull out of unprofitable and non-strategic operations, which account for more than 10% of its business, the report said. Sony decided to withdraw from domestic production of TV tubes because demand for conventional TV sets is forecast to drop.
Projected rapid growth in demand for flat-panel TVs has led the company to seek alliances with other manufacturers, in a bid to secure a slice of the potentially highly lucrative market.
Sony last week said it was in talks with Samsung Electronics of South Korea over joint production of liquid crystal display panels, in which they reportedly plan to invest 1.8 billion dollars.
Sony did not immediately comment on the report.