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Sony Reportedly Cutting 1,000 Jobs From Struggling Smartphone Division

by Jacob Kleinman | January 28, 2015January 28, 2015 8:00 am PST

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There’s no denying that Sony makes a good smartphone—just look at the most recent Xperia lineup—but selling those devices is a whole other story. The Japanese company still hasn’t managed to compete with bigger players like Apple and Samsung, and now it could be preparing to let 1,000 employees go from its mobile team in an effort to cut costs.

Japanese news outlet Nikkei reports that the company’s latest round of job cuts will affect about 30 percent of Sony’s mobile team, leaving roughly 5,000 employees behind. The news isn’t official just yet, though it’s likely we’ll get the full story during Sony’s next earnings report on Feb. 4.

Early estimations predict that Sony’s smartphone division may have lost as much as $1.5 billion in the past fiscal year, selling just 41 million handsets in 12 months. Considering that the company may not release a new flagship phone until the summer, it could be a while before things turn around. In the meantime, laying off a huge chunk of its workforce should help keep costs down.


Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...

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