Sony Mobile is cutting 15% of its workforce and moving its global headquarters from Sweden to Japan.
The job cuts will affect approximately 1,000 staff but its UK business will not be hit by the changes. The manufacturer said the cuts, which will be completed by March 2014, were necessary 'to increase operational efficiency, reduce costs and drive profitable growth'. Around 650 jobs will go from Sony Mobile's current head office in Lund, Sweden.
The operational changes, which will also affect Sony Mobile's site in Beijing, China, are part of the manufacturer's plans to streamline its supply chain and integrate the business further into the wider Sony group.
Sony Mobile president and CEO Kunimasa Suzuki said: 'Sony has identified the mobile business as one of its core businesses and the Xperia smartphone portfolio continues to gain momentum with customers and consumers worldwide. We are accelerating the integration and convergence with the wider Sony group to continue enhancing our offerings, and a more focused and efficient operational structure will help to reduce Sony Mobile’s costs, enhance time to market efficiency and bring the business back to a place of strength.'
Sony is under financial pressure, with the manufacturer cutting its profit and sales forecasts for the year ahead. Its first quarter operating income slumped 79% to $79m (£50.8m). Sales were marginally up by 1.4% to $19.18bn (£12.13bn) but that was attributed to the rolling in of Sony Mobile as a wholly-owned subsidiary, following the break up of its former joint venture with Ericsson.
Editor: Graeme Neill