Sony will slash 2,000 jobs in its smartphones unit

Sony
IMAGE SOURCE: Sony

IMAGE SOURCE: Sony

Earlier, we told: https://www.china-devices.com/sony-mobile-will…in-50-until-2020/

It’s always sad to see a multi-national leading Tech company folding and gradually growing less popular. A company, which was once an iconic brand, Sony Inc. is now planning to lay half of their mobile division workforce by 2020. The company says the measures are being taken in the wake of low sale prices.

The move, in a best-case scenario could result in over 2,000 staff members getting shifted to a new department at Sony. Worst-case being, the entire bunch losing their jobs.

DROP IN MARKET VALUE

Research reports tell us that Sony’s share of the smartphone market has fallen sharply in recent years. The shares dropped from more than three per cent in 2010, to less than one per cent currently.

SONY IS WAY BEHIND ITS COMPETITORS

It has struggled to compete against leaders Apple, Samsung Electronics and Huawei Technologies, all of which are racing to develop new 5G devices.

LIMITED SALES WITH INCREASED FOCUS

The Tokyo-headquartered company would cut smartphone sales in Southeast Asia and other areas to focus on markets like Europe and East Asia.

The company’s smartphone sales for fiscal 2018 are projected to come in at a dismal 6.5 million units, half the previous year’s figure and just one-sixth that of five years ago.

In 2014, Sony pulled 1,000 employees from its smartphone operations but sales have plunged faster than expected, necessitating a further round of cuts.

Some of the Japanese employees hit by the decision would be transferred to other divisions in the company, but the firm would offer voluntary retirement in its Europe and China operations.