Sony Mobile is likely to experience a significant job cut. After the retirement of Sony’s Chairman, Hirai Kazua, Sony Mobile announced that it is merging with the TV, audio and camera options into Sony Electronics Products and Solutions. It is reported that Sony’s smartphone workforce will be reduced to as much as half of the 4,000 currently employed workers and this will happen by 2020.
The Japanese company explains that this move will be taken as a cost-effective measure. Sony will also scale down the mobile division by focusing on Europe and East Asia, and limiting operations in Southeast Asia. Reports tell us that some of the Japanese employees will be offered positions in other divisions. Whereas, the workers in Europe and China will have to opt for voluntary retirements.
The restructuring and the job cuts come just after projections for a third consecutive fiscal year in the red for Sony Mobile in the fiscal 2019 reports. The company’s market share has shrunk to less than 1% after being more than 3% in 2010 and smartphone sales for the 2018 fiscal year are expected to be around 6.5 million units’ mark. The Japanese company hopes that after this deep restructuring and cut in operating costs, the division will be able to get profit by 2020.