Sony Mobile is shifting its global headquarters to Tokyo and has cut 1,000 jobs, in a bid to turn around its depleting fortunes in the smartphone segment.
The restructuring comes six months after the company became a wholly-owned subsidiary of Sony, following Sony’s takeover of Ericcson’s 50% stake in their joint venture – Sony Ericsson Mobile Communications.
Sony Mobile plans to move its headquarters to Tokyo in October and other functions from Lund, Sweden to Tokyo. The Swedish town will be the hardest hit by the changes as around 650 employees there across a number of functions will be affected by the job cuts.
The company, however, will not close the Lund facility as about 2,000 people will continue to work on software and application development in the site. The remaining staff trimming constitutes about 15% of Sony Mobile’s global headcount. The process is expected to be finished by the end of March 2014.
The company aims to save money to help the company become profitable, but for that to happen Sony would have to increase its sales. Sony Mobile CEO Kunimasa Suzuki said that the company is now accelerating its integration and convergence with the wider Sony portfolio to help make its products more desirable.
Sony has to buck up and prepare to face fresh slew of competition at the IFA in Berlin next week from Apple and Samsung which have taken the market by storm with their Andriod smartphones.