Report: Sony to lay off half of its mobile division staff by 2020 (2,000 people)

Report: Sony to lay off half of its mobile division staff by 2020 (2,000 people)
Sony is expected to shrink its mobile business even further after announcing its merger with the TV, audio and camera divisions earlier this week. Although it's not yet official, it appears that the Japanese company is doing more than just hide the mobile division's losses under a wall of profits coming from the other three business.

Nikkei Asian Review reports Sony plans to lay off 50% of its smartphone workforce by 2020. The percentage is high, but the number of people affected is quite shocking, as more than 2,000 are to be let go or transferred to other divisions.

Sony's mobile business has been bleeding money for several years now, even though the Japanese company continuously tried to cut costs by scaling back its workforce. The report says that the decision is part of a move to reduce fixed costs in the business and includes procurement reform.

Although some of the Sony employees affected by the decision will be transferred to other divisions, the Japanese company is said to offer voluntary retirement in its Europe and China operations.

Another step towards cutting costs is limiting smartphone sale in some territories. Apparently, Sony will stop selling smartphones, or sell very few of them, in Southeast Asia and other areas, in order to focus on Europe and East Asia, which seem to better markets for its products.

This is the second time in the last five years that Sony is significantly scaling back its smartphone workforce. Back in 2014, the Japanese company laid off 1,000 employees from its mobile division, but that wasn't enough to stop the losses, so further rounds of cuts were made almost on a yearly basis.

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14 Comments

1. frequency

Posts: 109; Member since: Aug 13, 2013

sony should sell its mobile division ASAP, Maybe Google, Huawei, Samsung or xiaomi and OPPO will buy it.

2. Cheezwiz

Posts: 500; Member since: Dec 29, 2014

They should go the route of OnePlus and others that bring a single device to market.

15. cheetah2k

Posts: 2271; Member since: Jan 16, 2011

OP release 2 flagships a year. It's a great model and they've got a larger phone market share than Sony. Problem with Sony is the many years of disappointment among fans. The fans are leaving in droves now

3. CreeDiddy

Posts: 2248; Member since: Nov 04, 2011

But Android captures 75% market share. How can this happen? LOL! It’s a matter of time when only 5 Android manufacturers will remain tall over the rest. As I keep staring Android is the sum of its parts or dog eat dog. Growth for Android only occurs by eating at each other. Happened to Motorola. Now Sony. Who’s next? Predictions?

4. CreeDiddy

Posts: 2248; Member since: Nov 04, 2011

Forgot about HTC

5. midan

Posts: 3001; Member since: Oct 09, 2017

"Who’s next? Predictions?" ;)

14. cheetah2k

Posts: 2271; Member since: Jan 16, 2011

HTC's mobile division is owned by Google. Doubt that will die anytime soon

6. midan

Posts: 3001; Member since: Oct 09, 2017

Nailed!

8. foldablephone

Posts: 58; Member since: Sep 19, 2018

They should buy Razors phone division and focus on a true PlayStation branded Phone (with high frame rate) and include Walkman branded front facing audio and possible slide out control sticks. Especially with the Vita now over. I have no idea how they can get their console so popular and yet mess up mobile. Mobile gaming / audio markets is who they should be focusing on, while continuing to supply their camera lens to the rival flagship brands.

9. Trashboat78

Posts: 10; Member since: May 05, 2018

What a shame, I was a die hard Nokia fan and the real Nokia died, Sony tried to be different but didn't learn from their mistakes. Yes they aren't dead yet but I can't see them come back and makes me think twice about the Xperia 1.

12. cheetah2k

Posts: 2271; Member since: Jan 16, 2011

What made me think twice about the X1 was the crappy battery. 3350mah doesn't gel well in a full time 4k handset. Sony have been full of fails since the Z3. I'm surprised they lasted this long

16. Trashboat78

Posts: 10; Member since: May 05, 2018

The battery on my XZ2 PREMIUM is better than my note 9 believe it or not, it's just I was burnt by Nokia a while ago and now this.

10. deewinc

Posts: 455; Member since: Feb 21, 2013

SONY can build a very robust phone and deliver may be two or three variants of it. They should just forget about the low-end and middle market segments and focus on just the high-end. They have expertise in products such as Walkman, PlayStation, and Photography. They can combine all that in one superb device and stop making skyscraper type of very tall and slim phones. They're ugly!

11. cheetah2k

Posts: 2271; Member since: Jan 16, 2011

Bye bye Sony. It's about time. China phones got ya number..

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