Mobile Maker Sony Restructures, Jobs Cut In Half

Sony Mobile Communications recently laid off 1000 of its workers in Lund, Sweden, where some of the company's R&D facilities and manufacturing centers are located.

In addition to the job cuts, head of Sony Mobile, Hiroki Totoki also confirmed that the company already planned to wind down operations in markets where the company had slim or no chances of gaining profit margins and shares due to rising operational losses.

The company stated that operating costs of 39 billion yen are expected to hit an all-time high this year in its mobile division. However, Sony group hopes to achieve 320 billion yen ($2.6 billion) annual revenue this 2015.

In earlier reports, the company said that the inevitable job cuts were rolled out by the company as part of its cost-cutting measures and profitability structure, as confirmed by Bengt Anne Molin, Sony's chief executive in Sweden.

"We had a meeting with all of our employees, where the CEO (Kazuo Hirai) presented the structural changes from April 1^st", said Molin.

The chief executive added that the layoff was a result of Sony's move to restructure its mobile division, with an end goal of achieving larger profit margins, to sustain the company.

He added, "It has to be done even though it is painful and difficult for many to accept. But we will still be among the largest employers in the region and one of Sweden's hi-tech companies. Sony's future is at stake, we need to be profitable over the longer term."

Sony Mobile explained its decision in an official statement released to media.

"To create long term profitability Sony Mobile has made a decision regarding a new organizational structure from April 1^st, 2015. The goal is to create a more operationally efficient and fast-moving organization."

The company also announced that one of its top executives, in its North Western European facility, Pierre Perron, was also resigning from the company.