Menu
Is Sony Mobile set for 1000 more job cuts?

Is Sony Mobile set for 1000 more job cuts?

The staff reduction is reportedly an attempt to return the unit to profitability...

Sony is planning to lay off another 1,000 people from its mobile division as it attempts to bring the unit back to profitability, according to Japan's Nikkei business daily.

The cuts will mainly affect Sony's European and Chinese operations and are expected to be announced as part of a restructuring plan unveiled when it delivers its quarterly results on February 4, the newspaper said without citing its source.

Sony has been beset by rocky business conditions for many years. Its most recent attempt to turn around its smartphone operations began in 2012 when it acquired Ericsson's stake in Sony Ericsson, a mobile phone maker created by the two companies in 2001.

For the July-to-September quarter, Sony Mobile Communications reported sales of ¥308 billion ($2.8 billion), a rise of just over 1 percent on the year. The division's operations barely broke even but it was pushed ¥172 billion into the red by a large write-off in the perceived value of the company's brand.

At that time, the company announced a similar round of 1,000 layoffs.

For the final three months of 2014, Sony is seen reporting an equivalent loss as a result of stiff competition in China, the Nikkei said. The business is expected to continue losing money in 2015 but Sony is planning to turn it profitable in 2016, according to the newspaper.

Sony's smartphones have received critical acclaim, but their high prices have limited their popularity. Sony also lacks a significant distribution network in the U.S. market.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags smartphonesbusiness issuesAndroidsonyconsumer electronicslayoffsSony Mobile Communications

Featured

Slideshows

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Kiwi channel debates GDPR as Reseller News Exchange hits Wellington

Kiwi channel debates GDPR as Reseller News Exchange hits Wellington

This exclusive Reseller News Exchange, in association with Arrow ECS ANZ, ForeScout and StorageCraft, went on the road to debate the early implications of GDPR in New Zealand, extracting opportunities while evaluating challenges for the channel in the year ahead.

Kiwi channel debates GDPR as Reseller News Exchange hits Wellington
Show Comments