• Bloomberg


Sony Corp., planning to cut 10,000 jobs as it tries to recover from a record loss, may eliminate as many as 1,000 positions at a mobile-phone unit in Sweden, the Sydsvenska Dagbladet newspaper reported.

About 3,000 people work at the unit in Lund, and Sony is considering moving the development of new mobile phones to Japan, the newspaper said, citing sources familiar with the matter. Sony called a mandatory staff meeting at 9 a.m. local time Thursday, public broadcaster Sveriges Radio said on its website.

Sony is shrinking its global workforce by about 6 percent, closing plants and reorganizing its businesses after posting a ¥457 billion net loss for the year that ended March 31 amid slumping demand for its Bravia TVs, competition from South Korean rivals and the strong yen, which erodes earnings from overseas. The company on Aug. 2 cut its profit forecast for the year ending March 31 to ¥20 billion from ¥30 billion.

Sony bought Ericsson AB’s half of their 10-year-old mobile-phone joint venture Sony Ericsson Mobile Communications AB for €1.05 billion (more than ¥102 billion) in February after its main TV business declined. Sony Chief Executive Officer Kazuo Hirai is counting on digital cameras, games and mobile devices to help drive a revival, he said April 12.

The Lund Sony unit may keep development of mobile software, which could sustain 1,500 jobs, Sydsvenska Dagbladet reported.

Sony’s TV and mobile-phone businesses “continue to be plagued by structural challenges, such as the commoditization and maturity of major products, rapid technological changes, and intense global competition,” Moody’s Investors Service said in a statement Aug. 6.

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