Sony Mobile cuts 1,000 staff, moves HQ to Tokyo

A majority of the staff cuts will be made in Sweden

Sony Mobile is laying off 1,000 employees and will also move its global HQ to Tokyo, as the company tries to turn around its dwindling fortunes in the smartphone space.

The reorganization comes about six months after the company became a wholly-owned subsidiary of Sony, following Sony's acquisition of Ericsson's 50 percent stake in their joint venture, Sony Ericsson Mobile Communications.

In October, Sony Mobile will move its corporate headquarters and other functions from Lund, Sweden to Tokyo. The Swedish town will be the hardest hit by the changes as around 650 employees there across a number of functions will be affected by the job cuts, according to a statement.

However, the Lund office will not be closed, as about 2,000 people will continue to work on software and application development, a Sony Mobile spokesman said.

The remaining headcount reductions will primarily consist of consultants in Sweden. The redundancies represent about 15 percent of Sony Mobile's global headcount, and the staff trimming is expected to be finished by the end of March 2014.

The goal is to save money to help the company become profitable, but Sony Mobile will have to convince more consumers to buy its devices for that to happen. It is now accelerating its integration and convergence with the wider Sony portfolio to help make its products more desirable, Sony Mobile CEO Kunimasa Suzuki said in a statement.

Sony Ericsson and now Sony Mobile have struggled to keep up with smartphone market leaders Apple and Samsung, as well as smaller Android competitors like HTC and Motorola. It is no longer one of the ten biggest phone makers in the world by volumes, according to Gartner's data for the second quarter.

Sony is due for a product refresh, and those smartphones will be the first truly Sony created and branded phones, according to Ben Wood, director of research at CCS Insight. But success will not come easily.

"Sony Mobile is going to have a tough time getting traction in the market place, but it is not going to go away because it is such an important part of the Sony conglomerate and its multi-screen strategy," said Wood.

The next chance for the company to show how it will turn around its fortunes is at the IFA consumers electronics show, which will take place next week in Berlin.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?