Sony Ericsson Cuts Jobs, Products Jun 25, 2003

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Mobile phone maker Sony Ericsson said it would pare back its product range, close a research and development facility, and eliminate 500 jobs in an attempt to swing into profit.

The 50-50 venture between Swedish telecoms equipment maker Ericsson and Japanese consumer electronics group Sony said it would cease making handsets for the North American market using code division multiple access (CDMA) technology. It will continue making CDMA handsets for customers in Japan.

"R&D activities in Munich, Germany will be phased out. In total approximately 500 employees will be affected in Munich...and at Sony Ericsson's CDMA R&D centre in Research Triangle Park, North Carolina," the company said in a statement.

Sony Ericsson saw its share of the global mobile phone market languishing at less than 5 percent in the first quarter of 2003, according to industry research group Gartner Dataquest.

The company had set a target of becoming profitable this year and capturing a market share of 7 to 10 percent, although Sony Ericsson spokesman Peter Bodor could not confirm whether the company was on track to meet its targets.

A further update on its progress would come with second quarter results due on July 18, he said. (Reuters)

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