Handset maker 358m in the red, cuts 2,000 jobs to save 400m.
Sony Ericsson this morning confirmed a massive pre-tax loss for 1Q09, albeit in line with earlier forecasts, and swiftly embarked on a €400m cost savings drive that will see 2,000 more jobs go this year.
The news comes a day after rival Nokia posted a 90 per cent slump in profits for the same period.
Specifically, Sony Ericsson has posted a pre-tax loss of €358 million for the first three months of this year, with revenue down 55 per cent YoY at €1.74 billion.
In terms of cost cutting, the company will spend €200 million downsizing its workforce by 2,000 people this year (on top of the 2,000 redundancies it has already made) and implement a €400 million programme of wider cuts, to be completed mid-2010.
Dick Komiyama, President at Sony Ericsson, said: “As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand. We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible."
Advertisement
