Sony moving mobile division to Tokyo
August 24, 2012 // 10:58 a.m.
Companies: #japan #sony
Sony's mobile division is moving its headquarters from Lund in Sweden to Tokyo, resulting in approximately 1,000 job losses. The jobs on the line represent a 15% reduction in the mobile division’s total global workforce.
The relocation is being made in an attempt to improve the operational and development capabilities of the division and the company stresses that mobile is still an important part of its business, despite the reduction in staff.
'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,' said Sony Mobile president and chief executive Kunimasa Suzuki.
In its most recent financial quarterly results, Sony identified its gaming and mobile divisions as some of the more profitable areas of the business with Sony Mobile bringing in $3.6bn in revenue over the quarter. Sony chief executive Kazuo Hirai stated that the company is counting on these divisions, along with its digital camera business, to drive the electronics company's revival and offset its loss-making TV business.
The staff cuts are due to be completed by 2014 and will be comprised of 650 jobs in Lund with the remaining 350 being made up of consultants and other support staff. The cuts are part of Sony's major reorganisation plan to cut up to 10,000 jobs across the whole company, which it announced in April.
After its 10 year partnership with the Swedish handset manufacturer, Sony bought out Ericsson from its 50% share in the mobile division at the beginning of the year for $1.3bn. Under the Sony Ericsson and Sony Mobile brands, the company has produced the Xperia range of Android powered smartphones and a range of tablet devices.