We knew things were bad at Sony, but we didn’t know they were this bad.

In its latest earnings report, the company announced Wednesday that it had sustained a net loss of $1.246 billion during the fiscal year ending March 31, 2014. Last fiscal year, Sony managed to profit $435 million , its first profit in years—it has missed profits in six of the last seven years

In the same earnings report, the once-giant of Japanese electronics predicted a $491 million loss for the 2014-2015 fiscal year. Combined with its previous seven years of disappointing numbers, Sony has sustained nearly $10 billion in losses over that time.

Earlier this year, the firm sold off its struggling VAIO PC business.

“The biggest challenge for Sony is whether it can change its high corporate cost structure,” Chief Financial Officer Kenichiro Yoshida said during a briefing to investors and reporters. “Electronics are a high volatility business; we need to bring the volatility down.”

As a result of the poor performance, 40 Sony executives have been asked to return nearly $10 million in annual bonuses.

In November 2012, Moody’s downgraded Sony’s long-term debt rating from Baa2 to Baa3, one notch above junk status. That marked the second time in a month Sony was hit with a downgrade. In January 2014, however, Moody’s pushed Sony’s rating over the edge to Ba1—aka junk status.

“Of primary concern are the challenges facing the company's TV and PC businesses, both of which face intense global competition, rapid changes in technology, and product obsolescence,” Moody’s wrote in January 2014.