Handset maker Sony Ericsson's second-quarter profits dropped a dramatic 97 percent causing the company to cut its workforce by 2,000 people. Second quarter profits were $9.5 million, down from $348.6 million in second-quarter 2007. In addition, net sales fell 9.4 percent to $4.46 billion down from $4.92 billion.

Sony Ericsson shipped 24.4 million phones in the quarter, down 2 percent from second-quarter 2007. The average selling price of its handsets was $183.72 down from $191.64. in the year-earlier quarter.  

The news didn't come as a huge shock to investors because the company issued a warning in late June that slowing demand and shipping delays would hurt its second-quarter earnings. Sony Ericsson President Dick Komiyama said during a conference call on the earnings that the company is taking steps to become "a faster, more agile and more cost-efficient organization." That includes reducing its workforce by 2,000 people, which will save the company about $475 million.

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- see this article [1]

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