Sony confirms 2,100 smartphone job cuts, primarily in China

[froggyboy604]

Despite the sales of its Xperia smartphones picking up in the last quarter, Japanese technology giant Sony announced that it would cut 2,100 jobs in its struggling mobile communications segment by March next year, with job losses mostly to take place in China and Europe, according to a Sohu news report on Thursday.

The total 2,100 layoffs, once completed, will trim Sony's mobile division to about 5,000 employees, representing a 28 percent reduction in the segment.

Sony said it will likely record a net loss of 170 billion yen ($1.4 billion) for 2014, according to preliminary results released on Wednesday. The ailing electronics conglomerate has been shedding business units under a restructuring plan spearheaded by its CEO Kazuo Hirai.

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I never knew that Sony hired so many people in China. My best guest is most of these jobs are probably factory jobs since China has a lot of factories. I'm guessing we'll be seeing less Sony Smartphones in stores now since it looks like Sony is making fewer smartphones now that Sony has fewer employees.

It is also crazy that Sony is still losing $1.4 billion dollars in 2014 even after it sold so many PS4 and games.

I bet, the Chinese mainly buy Chinese brands from Xiaomi, Lenovo, ZTE, Huawei, and Meizu which sells phones for cheaper prices, but offering better, and faster performing smartphones.

I read in blog posts on tech sites that the Chinese are also crazy for Apple iPhones where people illegally smuggle hundreds of iPhones into China to sell for very high prices.

 

[Demon_Skeith]

I never knew they were located in China, that seems rather odd and not a safe move if Japan and China have a fall out.

 

[froggyboy604]

Most likely Sony hired Chinese workers in China to save money like how Sony consoles are made in China now because Sony is too cheap to hire American, Japanese, and European workers to assemble consoles.

Sony might of also think there will be a huge demand for Sony smartphones in China in the past, so they decided to hire a lot of Chinese workers to make smartphones to sell in China. But, the demand for Sony Smartphones in China never got very high because the Chinese want iPhone smartphones made by Apple where the Chinese would pay thousands of dollars for someone to smuggle an iPhone 6 Plus into China.

Chinese iPhone 6  Smuggler

There are also cheaper Chinese alternative smartphones made by Xiaomi, Lenovo, ZTE, Huawei, and Meizu which attract more Chinese buyers because they cost less, and have more features. Samsung, and LG smartphones are also pretty popular.

 

[Demon_Skeith]

That was well put together, too bad it made him look clunky.