Sony Ericsson to lay off 450 people at RTP operation

Research Triangle Park, N.C. — Sony Ericsson is launching its highly anticipated Xperia X1 smart phone in London on Tuesday, but most of the company’s research and development team in North America won’t be in any mood to celebrate.

The mobile technology venture from entertainment giant Sony and telephone firm Ericsson said Monday that it would cut its North American headquarters in RTP by some 450 positions.

Some 750 people work at the facility, which is focused largely on research and development.

“Approximately 450 are being affected in RTP,” said company spokesperson Aldo Liguori. “This number includes employees/consultants.”

No other details “are available today,” Liquori added. “Detailed discussions and consultations will begin tomorrow.”

As of Monday afternoon, Sony Ericsson had not filed a mass layoff notice with the Workforce Development Division of the North Carolina Department of Commerce.

Sony Ericsson is focused largely on the mobile device market, including smart phones and such devices as multipurpose watches. It ranks fifth in the world in global cell phone sales with some 8 percent of the market, according to Strategy Analytics.

The company had promised earlier in the summer to reduce headcount.

“Sony Ericsson recognizes that market conditions have changed very rapidly and action must be taken to ensure that it can remain competitive in the dynamic and fast-paced telecommunications industry,” the company said in a statement. “Today, the company confirms that it is beginning to implement a plan to align its operations and resources worldwide to meet an increasingly competitive business environment and to help restore its capability for profitable growth. The measures that are being taken by Sony Ericsson are aimed at becoming a faster, more agile and more cost-efficient organization.”

The Xperia phone was developed by a team in San Francisco, according to the Sony Ericsson spokesperson.