Sony Mobile to Terminate 1,000 Jobs in Lund, Sweden

Bengt_Arne_Molin

Writing about the tech industry can be quite exhilarating when you’re covering a company that continues to push forward and win consumers over. Even if that’s not the case, just covering gadgets on it’s own isn’t a half bad thing. When it comes to covering Sony, we’ve unfortunately had to cover such pieces one too many times and today’s article is no different and reflects the real casualties of Sony’s decline from its former glory. With a lack of growth in mobile, Sony is in need of cutting costs where it can and with mobile returning little to the company’s bottom line, Sony is looking at the division once again for cuts.

Details await you.

Confirmed by Sony, the Japanese giant is looking to cut their Lund, Sweden workforce by in half. The 1,000 cuts will come from the Sony Mobile’s facility where it currently employs 2,200 people. 400 of the cuts will come from consultants, leaving only 1,200 people at the facility. Just in 2013, Sony had cut the Lund workforce by 400 after purchasing Ericsson and bringing mobile operations in house. After a meeting on Monday at the facility where the cuts were announced, it’s said that “silence fell in the room.” Seved Andersson, vice chairman for engineers’ union Sveriges Ingenjörer,

 We had expected layoffs, but I think the number surprised many. It feels that way, at least judging by reactions. 

Speaking to reporters on Monday after the layoffs were announced, Sony Mobile’s chief executive in Sweden, Bengt Arne Molin said

 We had a meeting with all of our employees where the CEO (Kazuo Hirai) presented the structural changes from April 1st. 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 leading hi-tech companies. 

In a statement that sums up the cuts after cuts we see from Sony, Molin added

 Sony’s future is at stake, we need to be profitable over the longer term 

Sony’s official statement on the matter:

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

Discuss:

Do you think cuts will help Sony reach its goals?