Sony Ericsson plans to cut costs by axing 2,000 jobs around the world, 450 of which will be in the US.
The company blames the job cuts on rapidly changing market conditions and the need to stay competitive in a ‘fast-paced’ industry.
A statement from the company said the cost cutting measures will will put it back on track for profitable growth.
Revenues at the company have been falling fast, with second quarter net profit this year just €6 million, down 97% on the €220 million profit for the second quarter of 2007.
Declining profits have been blamed on a growth slowdown in Western Europe.
Aldo Ligouri, head of global communications and public relations at Sony Ericsson, confirmed the layoffs, adding that they are part of a company wide shake-up announced in July.
At Sony Ericsson’s US headquarters in North Carolina, 450 of the facility’s 750 staff will be laid off, in a measure that will cut the company’s US workforce in half.
Savings of $422 million per year are expected from the job cuts.