Sony to cut 1,000 jobs from mobile division

Sony Layoffs 2012

Sony (SNY) announced on Thursday that it plans to eliminate 1,000 jobs from its mobile division, representing a 15% reduction of its total global workforce. The news comes just six months after Sony completed its buyout of the Sony Ericsson joint venture and three weeks after Sony lowered its full-year forecast. “Sony has identified the mobile business as one of its core businesses and the Xperia smartphone portfolio continues to gain momentum with customers and consumers worldwide,” said Sony Mobile CEO Kunimasa Suzuki. “We are accelerating the integration and convergence with the wider Sony group to continue enhancing our offerings, and a more focused and efficient operational structure will help to reduce Sony Mobile’s costs, enhance time to market efficiency and bring the business back to a place of strength.” The company also said it plans to move its mobile headquarters from Sweden to Tokyo, Japan. Sony’s full press release follows below.

Sony Mobile Communications Announces New Operational Structure and Reduction in Workforce

LONDON, August 23, 2012/PRNewswire/ –

Sony Mobile Communications AB (“Sony Mobile”) today announced that it is altering the global operational structure of its development sites in Tokyo, Japan, Lund, Sweden and Beijing, China. In October 2012, Sony Mobile will move its corporate headquarters and certain other functions from Lund, Sweden, to Tokyo, Japan. Sony Mobile has also redefined the roles and responsibilities of each major development site to leverage the strengths of each respective site. These measures aim to enhance operational and development capabilities of Sony Mobile such as time to market efficiency, streamline supply chain management and drive greater integration with the wider Sony group.

“Sony has identified the mobile business as one of its core businesses and the Xperia(TM) smartphone portfolio continues to gain momentum with customers and consumers worldwide,” said Kunimasa Suzuki, President and CEO of Sony Mobile. “We are accelerating the integration and convergence with the wider Sony group to continue enhancing our offerings, and a more focused and efficient operational structure will help to reduce Sony Mobile’s costs, enhance time to market efficiency and bring the business back to a place of strength.”

In relation to the operational structure changes, Sony Mobile plans to reduce its global headcount by approximately 15 percent (approximately 1000 personnel, including consultants) throughout the financial years of 2012 and 2013 (i.e. by the end of March 2014) as the company seeks to increase operational efficiency, reduce costs and drive profitable growth.

Today Sony Mobile filed a redundancy notification (“varsel”) with the Swedish authorities to notify them that the company expects around 650 employees across a number of functions at Sony Mobile in Lund to be affected by job closures. The remaining headcount reductions will be primarily consultants in Sweden. Lund will continue to be an important strategic site for Sony Mobile, with the main focus on software and application development.

Sony Mobile is a wholly-owned subsidiary of Sony Corporation, following Sony Corporation’s acquisition of Telefonaktiebolaget LM Ericsson’s 50% stake in Sony Ericsson Mobile Communications AB, completed on February 15, 2012.

“Sony” is a trademark of Sony Corporation. “Xperia” is a trademark of Sony Mobile Communications. All other trademarks or registered trademarks are the property of their respective owners.

blog comments powered by Disqus