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Sony Ericsson to cut 2,000 jobs

Mobile phone maker Sony Ericsson posted a 97% drop in Q2 earnings and said it would cut 2,000 jobs worldwide.

The Stockholm-based joint venture between Ericsson and Sony blamed the second-quarter earnings plummeting to €6 million (about $7.8 million) from €220 million euros (about $286 million) in the year-ago quarter, due to tougher market conditions, higher development costs and negative effects from exchange rate fluctuations.

Company spokeswoman Lisa Canning in London said the company would cut 2,000 jobs within the next 12 months as part of an effort to reduce operational costs by €300 million ($470 million) per year.

In a statement, Sony Ericsson President Hideki Komiyama said the company estimates restructuring charges to “be of the same magnitude as our reduction in operating expenses.”

It was the second profit warning this year from Sony Ericsson, which usually ranks fourth or fifth among the world's biggest mobile phone makers. (Xinhua)