Telecom Lead Asia: Sony Mobile is planning to reduce its
global headcount by approximately 15 percent or approximately 1000 personnel by
the end of March 2014.
Through the job cut, Sony Mobile is looking at increasing
operational efficiency, reducing costs and driving profitable growth.
The job cut is important for the ailing mobile business
of Sony. Sony Mobile has reported sales income of 5.21 billion euros in
2011 against 6.29 billion euros in 2010.
Sony Mobile said 650 employees at Sony Mobile in Sweden
will be affected. The remaining headcount reductions will be primarily
consultants in Sweden. Sweden will continue to be an important strategic site
for Sony Mobile, with the main focus on software and application development.
Recently, Sony increased its stake in Sony Mobile by buying
Ericsson’s 50 percent stake.
In October 2012, Sony Mobile will move its corporate
headquarters and certain other functions from Lund, Sweden, to Tokyo, Japan.
Sony Mobile is also altering the global operational
structure of its development sites in Tokyo, Japan, Lund, Sweden and Beijing,
Recently, Sony Mobile said localizing mobile devices for Asian
markets is important for handset makers wanting to have an impact in the
Sony Mobile has redefined the roles and responsibilities
of each major development site to leverage the strengths of each respective
site. These measures aim to enhance operational and development capabilities of
Sony Mobile such as time to market efficiency, streamline supply chain
management and drive greater integration with the wider Sony group.
Sony has identified the mobile business as one of its
core businesses and the Xperia smartphone portfolio continues to gain momentum
with customers and consumers worldwide.
Kunimasa Suzuki, president and CEO of Sony Mobile, said
the company is accelerating the integration and convergence with the wider Sony
group to continue enhancing its offerings, and a more focused and efficient
operational structure will help to reduce Sony Mobile’s costs, enhance time to
market efficiency and bring the business back to a place of strength.