Sony Ericsson to cut jobs worldwide
July 21, 2008
Sony Ericsson, the mobile phone manufacturer has said it will axe 2,000 jobs worldwide over the next year.
The company also reported losses of 2 million Euros for the second quarter of the year which is a contrast to the profit of 315 million Euros a year ago.
Sony Ericsson are hoping to cut operating costs by £300m a year. The mobile phone giant had already warned that profits would be less than forecast as demand fell.
A spokesman said that the company will review all operations before any decisions were made about where jobs would be cut.
Sony Ericsson are blaming the drop in profits on the credit crisis and consumers having less to spend. The financial crunch has hit many of the world’s largest economies such as the US, UK and Japan.
Along with other businesses Sony Ericsson has been trying to do more business in emerging markets.
Sony Ericsson chief executive Dick Komiyama said “Our target is to achieve a reduction in operating expenses of 300m Euros annually, with the full effect expected to appear within a year. The measures we are taking are aimed at becoming a faster, more agile and more cost efficient organisation that can continue to create innovative products that excite consumers.”
Visit www.sonyericsson.com for more information on the company.
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