2,000 jobs go at Sony Ericsson

Sony Ericsson is to slash 2,000 jobs globally over the next 12 months in a bid to cut operating costs by €300 million a year.

The mobile phone maker posted an operating loss of €2 million (£1.59 million, $3.1 million) for the second quarter, compared with a profit of €315 million a year ago. Sales in the quarter fell by 9.4% to €2.82 billion.

Last month, Sony Ericsson said profits would be less than previously forecast as demand for expensive handsets dwindled.

A review of all operations is to be taken prior to decisions about where the job cuts are to be made, according to a company spokesperson.

As a result of the credit crunch, consumers have been cutting back on spending which has led to a fall in demand in handsets.

The company has been conducting more business in emerging markets as the slowdown has affected many of the world’s largest economies including the US, UK and Japan.

Dick Komiyama, the group’s chief executive, said their target is to achieve a reduction in operating expenses and the measures are aimed at making the group a faster, more agile and more cost efficient organisation.

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