Sony Ericsson seems to have problems

20th November, 2009 by Adina
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An internal Sony Ericsson memo reveals that the company will take some major cost-cutting measures, including the fact that they will close some of their main buildings. The company has already notified its workers that the activity of the Research Triangle Park facility in North Carolina will soon end up, as well as offices from Chennai (India), Kista (Sweden) and Miami. Engadget states that, as a consequence, the company will have to drop at least 2000 jobs, which is significantly more than the 450 jobs dropped in 2008.

North Carolina facility workers will be able to apply for jobs somewhere else, but others will have to leave permanently. It is expected that these cuts take place in stages, not all at once.

These emergency measures result from the loss of the company’s influence on the phone market. Even if previous cuts have diminished losses, the company has still lost $244.7 million, because of the lower revenue, as well as a reduction in phone shipments. The company’s problems seem to come from its inability to design modern smartphones until recently and because of the fact that multiple phones often have the same features, only with minor differences.

Sony Ericsson’s first touchscreen smartphone, Satio, is already released, but the Android-based XPERIA X10 will not be launched until early next year.


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