Sony is to cut about 15 per cent of its mobile phone unit’s workforce and is moving its headquarters to Tokyo to reduce costs at the business.

About 1,000 jobs are to be cut, mainly in Sweden, Sony said yesterday in a statement in what would be one of the first major strategic decisions by the Japanese company on its former joint venture with Ericsson.

About 650 positions will be cut from its mobile divisions headquarters in the Swedish town of Lund, and the rest will primarily be consultants. The unit’s headquarters will move from Lund to Tokyo, where Sony is based.

Sony is shrinking its global workforce by about 6 per cent, closing plants and reorganising its businesses after posting a 457 billion-yen (€4.6 billion) net loss for the year ended March 31st, amid slumping demand for its Bravia TVs, competition from South Korean rivals and a strong yen, which erodes earnings from overseas.

The company on August 2nd cut its profit forecast for this year to 20 billion yen from 30 billion. – Bloomberg/Reuters