Sony to lay off 15% of its workforce in Mobile Phone division
August 24, 2012- On Thursday, Sony announced it would slash 15% of its workforce in it mobile phone sector, which has been struggling. The company said the headquarters for the mobile phone sector would be moved back to Tokyo from its current location in Sweden. The Japanese electronics giant is trying to drastically cut costs.
The 15% cut represents over 1,000 jobs and comes six months following Sony’s acquisition of Ericsson’s share of their prior joint venture known as Sony Ericsson. It was originally formed between Sony and the telecom giant from Sweden in 2001.
The joint venture had problems with launching smartphones that were popular amidst very stiff competition from rival companies such as Samsung Electronics and Apple. Sony said on Thursday that the cut in the workforce in Sweden would be completed prior to 2014 and was part of the company’s bid to reduce costs, increase its operational efficiency and drive profit growth.
Sony, famous for its Bravia TVs and PlayStation has already announced it is cutting 10,000 jobs across the globe. The company lost over $5.81 billion for the year through March, the fourth straight year the firm has lost money.
Sony also reported a loss for its latest quarter and lowered its forecast for profit for the entire year, as it tries to complete its overhaul while struggling with sales. Much of the problem has been within its television business. Firms in Japan have been hit hard by the strong yen, smaller profit margins and strong competition from rivals around the world.