Sony Ericsson to cut another 2,000 workers

The company shipped 35 percent fewer phones in the first quarter and lost market share

Struggling Sony Ericsson plans to cut another 2,000 jobs after shipments and market share dipped during the first quarter.

The announcement comes a day after number-one phone maker Nokia reported a 27 percent drop in sales but offered a glimmer of hope with expectations that next-quarter sales will be about the same or even slightly up compared to the first quarter.

A market improvement may not come fast enough for Sony Ericsson. It has already cut 2,000 workers after announcing it would late last year and now plans to cut as many more. Unit shipments for the first quarter dropped 35 percent compared to the same period last year. Sony Ericsson also lost two percentage points of market share compared to the previous quarter, now holding on to 6 percent of the market.

The company blamed continued weak customer confidence and de-stocking, where retailers and distributors clear out existing stock rather than order more, for its poor financial results.

A few recent high-level executive departures and persistent rumors about the future of the joint venture point to potential internal trouble at the company. Mats Lindoff, who had been CTO for six years, recently left the company, as did the head of Sony Ericsson's North America business.

Amid these challenges are rumors that Ericsson would like to exit the joint venture, leaving the company to be wholly owned by Sony. In response to the rumors, Ericsson has said that it is committed to the joint venture while Sony has declined to comment on the reports.

Like the other mobile-phone companies, Sony Ericsson is battling the ailing economy as well as new competitors, such as the iPhone. Sony Ericsson's touch-screen Xperia, hyped as an iPhone competitor, does not appear to be significantly boosting sales for the company.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

GGG Evaluation Team

Michael Hargreaves

Windows 10 for Business / Dell XPS

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?