UPDATE 2-Sony says to halve number of its suppliers

* Plans to reduce pool of suppliers to 1,200 from 2,500

* Aims to cut procurement costs by 20 pct this financial yr

TOKYO May 21 (Reuters) - Sony Corp (6758.T) said on Thursday it plans to halve the number of its parts and materials suppliers in the next two years, aiming to slash procurement costs by 20 percent this financial year as it seeks return to profit.

The measure is in addition to a current plan to cut fixed costs by more than 300 billion yen ($3.2 billion).

The electronics company expects a second straight year of losses, battered by weak global demand for consumer electronics while a strong yen has cut into profits earned overseas.

Sony spokeswoman Mami Imada said the company plans to have about 1,200 suppliers, instead of its current 2,500, by March 2011. It will reduce costs by increasing the volume of parts and materials purchased from each supplier.

Its procurement costs currently total about 2.5 trillion yen.

The consolidation of suppliers will include video game subsidiary Sony Computer Entertainment Inc, which had previously enjoyed considerable freedom in purchasing supplies. (Reporting by Sachi Izumi; Editing by Edwina Gibbs)