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Sony plans more job cuts as smartphone sales shrink
2015-02-04 08:57:00| Telecompaper Headlines
(Telecompaper) Sony announced plans to cut another 2,100 jobs at its mobile phone business by March 2016, in order to return the activities to profit. In the past year, the company already reduced headcount by 15 percent at the mobile division. The additional restructuring is expected to cost JPY 30 billion and lead to JPY 90 billion in cost savings by the fiscal year ending March 2017. For the current year to 31 March, Sony forecast an operating loss of JPY 215 billion on sales of JPY 1.32 trillion for the mobile division. The downgrade from its previousl outlook reflects lower smartphoe unit sales, mainly in Asia, and foreign exchange effects. It will also take a JPY 176 billion impairment charge on the activities. In the coming years, sales are expected to shrink to JPY 900 billion to JPY 1.1 trillion in the year to March 2018 and the operatign margin improve to a positive 3-5 percent. In the latest quarter to 31 December, Sony reported sales up 28.7 percent to JPY 429.0 billion, and operating profit improved to JPY 9.3 billion from JPY 6.3 billion a year ago. The results were helped by exchange rate effects as well as an increase in smartphone sales to 11.9 million units from 10.7 million in the year-earlier period. For the full year to March, Sony downgraded its forecast for unit sales to 39.2 million, flat compared to the previous year, from an estimate of 41.0 million in October.
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Category:Telecommunications