Friday, April 17, 2009

Sony Ericsson Saw $384m Losses in Q1 of 2009 and Planning to Cut 2000 Jobs

Sony Ericsson has announced that the company would cut 200 more jobs due to company’s continuous losses in the global mobile phone market. The decision of further job cut came in the wake of reports regarding the company’s losses of 293 million euros (384 million dollars) in the first quarter of the current fiscal year coming to the media. Sony Ericsson experienced heavy losses in the third and the fourth quarters of the last year too.

Due to economic recession, demand for mobile handset has been decreased significantly in the major mobile phone markets over the last one year. Naturally, Sony Ericsson is now experiencing the impact of the global economic slowdown. So, the company is trying to cut jobs in its bid to decrease costs. Well, I think, cutting jobs is not enough for bringing the company into profitability. Sony Ericsson should now focus on cheap, small-priced mobile phone market, in stead of focusing much on high-end users. If Sony Ericsson can come up with a couple of small-priced mobile handsets and grab a significant market share in the price-sensitive large markets like India, then the company can come out of losses.

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