Sony Ericsson starts slashing workforce

Handset vendor Sony Ericsson has been dishing out the bad news this week, after deciding which of its 2,000 employees will be out of a job.

The firm announced the cuts after a significant slide in profits during the second quarter, causing it to commit to a Eur300m cost saving plan over the next 12 months.

“Sony Ericsson recognises that market conditions have changed very rapidly and action must be taken to ensure that it can remain competitive in the dynamic and fast-paced telecommunications industry. Today the company confirms that it is beginning to implement a plan to align its operations and resources worldwide to meet an increasingly competitive business environment and to help restore its capability for profitable growth,” the company said.

The Swedish-Japanese joint venture is holding back on revealing where the cuts will be made until it announces its third quarter results next month. But it’s rumoured that 400 workers at the company’s North American headquarters in North Carolina face the axe before year end.