Sony Ericsson to cut 2000 jobs, reports 35% decrease in Sales YoY
After a weak financial result for Q1 09, Sony Ericsson has decided to cut 2000 jobs which will cost the company 12 $ millions in restructuring. As per the results announced, the YoY sale of handsets for Q1 09 has dropped to 14.5 million as compared to 22.3 million in Q1 of 08.
Q1 2009 highlights for Sony Ericsson are:
- Income before taxes was a loss of Euro 358 million (excl. restructuring charges)
- Cost saving program progressing as planned and additional savings of Euro 400 million announced.
- Launch of ‘Entertainment Unlimited’ consumer proposition and new generation of products well received by operator partners.
“As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand. We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible,” said Dick Komiyama, President, Sony Ericsson. “The management intends to pursue an additional cost saving program targeting a further annual operating expense reduction of Euro 400 million, to be completed by mid-2010.”
The press release for the result is available here.
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