Sony Mobile is to reorganize its affairs and reduce its workforce by around 15 percent, the company has announced. As part of these latest changes, Sony Mobile HQ will move from Lund, Sweden to Tokyo, Japan in October, resulting in the loss of around 650 jobs in the city, “primarily consultants,” Sony says. As part of its efforts to reduce costs across the board, Sony Mobile will lay off around 15 percent of its workforce (around 1000 people) by the end of its 2013 financial year in March 2014.
Additionally, Sony says it will “redefine the roles and responsibilities” of its global development sites in Lund, Tokyo and Beijing to “leverage the strengths of each respective site.” Lund will continue to be an important site for Sony Mobile, the company says, one primarily focused on software development.
With a tiny slice of the smartphone pie, and a negligible presence in the U.S. market, Sony Mobile will be hoping this restructuring, combined with its next round of Xperia smartphones and tablets (expected to be announced at IFA), will help growth and profitability.
We’ve got today’s press release in full after the break.
Sony Mobile Communications Announces New Operational Structure and Reduction in Workforce
LONDON, August 23, 2012 /PRNewswire/ -- Sony Mobile Communications AB ("Sony Mobile") today announced that it is altering the global operational structure of its development sites in Tokyo, Japan, Lund, Sweden and Beijing, China. In October 2012, Sony Mobile will move its corporate headquarters and certain other functions from Lund, Sweden, to Tokyo, Japan. Sony Mobile has also redefined the roles and responsibilities of each major development site to leverage the strengths of each respective site. These measures aim to enhance operational and development capabilities of Sony Mobile such as time to market efficiency, streamline supply chain management and drive greater integration with the wider Sony group.
"Sony has identified the mobile business as one of its core businesses and the Xperia™ smartphone portfolio continues to gain momentum with customers and consumers worldwide," said Kunimasa Suzuki, President and CEO of Sony Mobile. "We are accelerating the integration and convergence with the wider Sony group to continue enhancing our offerings, and a more focused and efficient operational structure will help to reduce Sony Mobile's costs, enhance time to market efficiency and bring the business back to a place of strength."
In relation to the operational structure changes, Sony Mobile plans to reduce its global headcount by approximately 15 percent (approximately 1000 personnel, including consultants) throughout the financial years of 2012 and 2013 (i.e. by the end of March 2014) as the company seeks to increase operational efficiency, reduce costs and drive profitable growth.
Today Sony Mobile filed a redundancy notification ("varsel") with the Swedish authorities to notify them that the company expects around 650 employees across a number of functions at Sony Mobile in Lund to be affected by job closures. The remaining headcount reductions will be primarily consultants in Sweden. Lund will continue to be an important strategic site for Sony Mobile, with the main focus on software and application development.
Sony Mobile is a wholly-owned subsidiary of Sony Corporation, following Sony Corporation's acquisition of Telefonaktiebolaget LM Ericsson's 50% stake in Sony Ericsson Mobile Communications AB, completed on February 15, 2012.
"Sony" is a trademark of Sony Corporation. "Xperia" is a trademark of Sony Mobile Communications. All other trademarks or registered trademarks are the property of their respective owners.
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Sony Mobile Communications, Global Communications & PR department