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Sony to cut 50% of smartphone workforce after poor sales

Sony to cut 50% of smartphone workforce after poor sales

Sony plans to cut around half of its workforce in the smartphone division, following disappointing annual sales and continued operating losses.

Sony's smartphone sales for its last fiscal year are projected to be around 6.5 million units, half the previous year's figure and just one-sixth that of five years ago, reports Nikkei. The mobile division is expected to once again post an operating loss again in 2019.

The decision is expected to see up to 2,000 of 4,000 jobs cut by March 2020, and in turn bring the mobile business into profit. 

Sony restructured its TV business back in 2014, focusing on premium 4K models. For Sony phones, the plan will reportedly see Sony focus on Europe and East Asia. The company announced a new flagship Xperia 1 with 4K HDR OLED display at MWC earlier this year.

Worldwide smartphone sales are expected to decline for the third straight year. The market is increasingly dominated by Apple and Samsung, alongside relative newcomers from China, such as Huawei.

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Joe Cox
Joe Cox

Joe is Content Director for Specialist Tech at Future and was previously the Global Editor-in-Chief of What Hi-Fi?. He has worked on What Hi-Fi? across print and online for more than 15 years, writing news, reviews and features. He has covered product launch events across the world, from Apple to Technics, Sony and Samsung, reported from CES, the Bristol Show and Munich High End for many years, and provided comment for sites such as the BBC and the Guardian. In his spare time he enjoys playing records and cycling (not at the same time).