Dwindling earnings force Sony Ericsson to trim workforce

A somber Q2 result will result to worldwide job cuts over at Sony Ericsson. The mobile phone manufacturer announced that it would trim its global workforce by 2,000 after reporting an operating loss Q2 due to tough market conditions and worldwide economic downturn.

The company posted operating loss of two million euros (about $3.1 million) in Q2, compared to a profit of 315 million euros in the same period of last year. Net profit plunged by 97 percent to 6 million euros from 220 million euros a year earlier, while sales fell by 9.4 percent to 2.82 billion euros.

In a statement, Sony Ericsson announced a restructuring program to curtail operating costs.

"Our target is to achieve a reduction in operating expenses of 300 million euros annually, with the full effect expected to appear within a year," Sony Ericsson CEO Dick Komiyama said.

"The measures we are taking are aimed at becoming a faster, more agile and more cost-efficient organization that can continue to create innovative products that excite consumers," he said.