Sony Ericsson cuts 450 jobs in North America

Phil Goldstein — Tue, 30 Sep 2008 10:00:09 -0400

Sony Ericsson announced it would lay off 450 workers from its North American headquarters at Research Triangle Park in North Carolina, further clouding the future of the joint venture.

The company has about 750 workers at RTP, a research and development hub for Sony Ericsson, and the move is in line with the restructuring the company announced in July, when it said 2,000 employees would be laid off worldwide as the handset maker adjusted to tougher market conditions.

The joint venture has been troubled for some time, and the company's second quarter profits dropped 97 percent, which came on the heels of a profit warning in late June that predicted the drop due to weakening demand and shipping delays. The joint venture has struggled to find its footing in a fiercely competitive market, and its market share remains relatively small.

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Ericsson's profit plummets 70%

Lynnette Luna — Tue, 22 Jul 2008 11:47:55 -0400

The world's largest mobile-phone infrastructure vendor Ericsson saw its second-quarter profit plummet by 70 percent because of costs associated with cutting jobs and the struggles associated with its Sony Ericsson handset joint venture, which reported a whopping 97 percent drop in second-quarter profit last week, causing the JV to cut 2,000 positions. The vendor's net income fell to $320 million from $1.07 billion a year ago. Revenue increased 2 percent to $8.1 billion in the quarter.

"The overall business activity shows stable development," said Carl-Henric Svanberg, president and CEO of Ericsson. "With no major changes in the market environment, we still find it prudent to plan for a flattish mobile infrastructure market in 2008 and our focus on adjusting our cost base remains."

Network sales fell 1 percent year-over-year as the continued decline of the U.S. dollar contributed negatively to sales, Ericsson said. Still, said the vendor, there is a steady demand for GSM equipment in high-growth markets such as Asia, which is driving the growth for network rollout services.

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- see Cellular-News

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Profit Warning

Sony Ericsson cuts 450 jobs in North America

Ericsson's profit plummets 70%