Sony Ericsson Cuts Job

by Administrator

In a sign of the continued decline of cell phone demand, Sony Ericsson has announced layoffs. The announcement came on the heels of a very bad quarter.

Mobile handset maker Sony Ericsson said Friday that it swung to a net loss of 293 million euros in the first quarter of 2009. Last year, the firm posted a profit of 133 million euros. The firm posted a pretax loss of 370 million euros, in line with a forecast it gave in March. Sales fell to 1.7 billion euros, from 2.7 billion euros last year, primarily due to continued weak consumer confidence and de-stocking. The firm plans to further reduce operating expenses by mid-2010 and cut another 2,000 jobs. It expects the global handset market to contract by at least 10% in 2009, from 1,190 million units in 2008. End of Story”

Nokia, the world’s largest cell phone manufacturer also announced job cuts after posting a 90% decline in net profits over the same quarter one year earlier.

Tags: Layoffs, Sony Ericsson