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Sunday 19th of April 2009
April 17, 2009

2,000 jobs go at Sony Ericsson as group looks to save €400m


by Kay Murchie
”2,000

Mobile phone maker Sony Ericsson has revealed a pre-tax loss of €358 million (£316 million) in the first quarter of 2009 and has announced plans to cut 2,000 jobs.

The group said continued weak global demand meant it had to make savings of €400 million and the 2,000 job losses are on top of 2,000 previously announced, which are now complete.

Sony Ericsson, which is the world’s number four mobile phone maker, said in the last year, the average selling price of its units had fallen by €1 to €120.

Sales for the three month period stood at €1.7 billion - a fall of 36% compared with the same period last year, mainly due to weak consumer confidence amid the economic downturn.

The news comes just a day after Nokia, the largest mobile phone company, announced a worse-than-expected 90% fall in quarter one profits.

Mobile phone companies have been some of the hardest hit in the recession as consumers tighten their belts.

In related news, electronics giant Toshiba has today announced plans to cut almost 4,000 jobs over the next 12 months. The announcement came as the group is expected to announce its first annual loss in seven years.

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