Article: Sony Ericsson Q2 profit slumps.(Financial report)

Byline: Nick Wood , Total Telecom

Sony Ericsson Friday announced an aggressive cost-cutting plan which involves shedding thousands of jobs, as its second quarter profit dived 97%.

"We are targeting a reduction in opex of [euro]300 million in 12 months, and as part of this we plan to reduce our workforce by 2,000 globally," a spokesperson for Sony Ericsson confirmed to Total Telecom.

Still, she insisted the move is part of the vendor's strategy of addressing the low-end market, and not "a knee-jerk response" to its plunging profit.

"We are aligning our operations and resources worldwide to meet an increasingly competitive business ...

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