Sony Ericsson plans 2,000 job cuts after steep drop in 2Q profit
Mobile phone maker Sony Ericsson is reporting a steep 97 percent drop in second-quarter earnings as tougher market conditions hurt its sales.
Posted — UpdatedNet profit at the joint venture of Tokyo-based Sony Corp. and Stockholm-based LM Ericsson fell to 6 million euros ($9.5 million) in the quarter from 220 million euros in the same period a year ago.
Sales were down about 9 percent to 2.8 billion euros ($4.4 million).
The joint venture had warned before Friday's report that it expected to just break even because of tougher market conditions.
Sony Ericsson operates a research and development center in Research Triangle Park, N.C. It employs some 750 people.
The quarterly results, downward price pressure and slowing demand for its high-end multimedia phones led to that decision, he said.
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