Another disappointing news from Sony this year after they reported either to sell of their Mobile Division or to get a partner for joint venture. Reuters reported that Sony Corp is planning to cut 1000 jobs in its struggling smartphone division.
Sony’s workforce reduction will take place mostly in Europe in China. The cuts are in addition to those announced by the company last year and will take place by March 2016. By then, the staff in Sony’s smartphone business will shrink by 30%.
For the July-to-September quarter, Sony Mobile Communications reported sales of ¥308 billion ($2.8 billion), a rise of just over 1 percent on the year. The division’s operations barely broke even but it was pushed ¥172 billion into the red by a large write-off in the perceived value of the company’s brand.
Sony’s smartphones have received critical acclaim, but their high prices have limited their popularity. The company has struggled to gain market share in high-end smartphones, lagging far behind Apple and Samsung Electronics.