New York, April 17: Mobile phone maker Sony Ericsson, which reported a loss of 293 million euro (about Rs 1,900 crore) for the first quarter this year, on Friday said it will slash 2,000 more jobs.
"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," Sony Ericsson President
Dick Komiyama said in a statement.
The company had a net income of 133 million euro in the
first quarter of 2008.
"The management intends to pursue an additional cost
saving programme targeting a further annual operating expense
reduction of 400 million euro, to be completed by mid-2010,"
Komiyama added.
The programme will include a further reduction in the
global workforce of approximately 2,000 people, he added.
Earlier, the company had announced cutting 2,000 jobs as
part of another savings initiative, now completed.
The company recorded a sale of 1,736 million euro for the
quarter, a plunge of 36 per cent from a year-ago period. It
decreased primarily as a result of continued weak consumer
confidence and both retailer and distributers reducing down
their stocks.
As of March 31, this year, Sony Ericsson has a strong net
cash position of 1.1 billion euro.
Bureau Report
