Sony announced on Thursday that it would cut 15% of the mobile phone unit workforce, which has had economic troubles. The consumer electronics company said it was also relocating the headquarters of its mobile phone unit. Currently it is located in Sweden, but will be relocated to Tokyo, as the Japanese company looks to dramatically cut its costs.
The cut of 15% will eliminate a total of 1,000 employees and takes place only six months after Sony acquired Ericsson’s part of the joint venture the two companies had entered into years ago named Sony Ericsson. The venture was formed originally in 2001 between Sony and Swedish telecom giant Ericsson.
However, problems with launching new and popular smartphones were experienced by Sony Ericsson due to the competition it faced from a number of rival companies like Apple and Samsung.
Sony is known worldwide for its game console PlayStation and its popular Bravia TV line. It had announced prior to Thursday’s announcement that 10,000 jobs worldwide would be eliminated in the company. For the year ended in March, the company experienced a loss of $5.8 billion and that marked the fourth consecutive 12 month period the company had experienced a loss.
Sony reported a loss in its most recent quarter and lowered its profit forecast for the rest of the year, as it attempts to finish its internal overhaul, while experiencing sluggish sales at the same time. Many of Sony’s problems have been experienced in its once very popular television line.
