Sony is Cutting 1000 Jobs
Just recently, it is reported that Sony has planned to cut another 1000 more jobs from their mobile division. Following 2013’s job cuts, of which were also about 1000 jobs, Sony’s mobile division will shrink 30% – to only 5000 people in their mobile division by the end of their fiscal year during March 2016, as according to reports from Japanese newspaper, Nikkei Business Daily. It is expected that they will announce their plans for job cuts on this February 4th.
These job cuts don’t come as a surprise as they have been trying to hold onto their position in the market of smartphones and to regain their falling profits. With recent rise of the Chinese smartphone manufacturers such as Xiaomi and Huawei, Sony is faced with big and increasing pressure, as the Chinese counterparts are able to offer devices of high end specifications for a much cheaper price.
Last year, Sony has reported that their mobile division has faced a $1.7 billion (MYR6.162 billion). Henceforth, it is reported that Sony will now focus on the high-end segment, and to break further into the U.S. market. This is one of the strategies that they will follow to return profits, other than shifting back to yearly flagship releases as well as reducing the amount of handset releases through the year.