Sony is reportedly already planning on slashing its smartphone workforce by 50% by next year. The company blames diminishing sales of its Xperia smartphones due to an increasingly difficult and extremely competitive global market.
The Japanese electronics giant may lay off up to 2000 of its 4000 global staff count by March next year. As part of its on-going cost-cutting exercise and “procurement reform”. Further, Sony will reportedly be limiting smartphone sales in the Southeast Asian region. In order to focus its attention on East Asia and Europe, where the reception for the Xperia is marginally better.
Sony’s market share in the smartphone market has dwindled severely, from more than 3% to below the 1% mark at current. Its lacklustre sales are primarily caused by its inability to keep up with current market leaders like Samsung, Huawei, and Apple. All of whom are currently in to produce devices capable of running on the new 5G network standard.
This isn’t the first time Sony has had to cut back on its number of employees and undergo a restructuring. Prior to this, the company reduced its 800 strong workforce at its Swedish office by 25%.
(Source: Nikkei Asian Review)