Reduction

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. 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.

At the time of its Q2 2008 financial results announcement on 18 July, Sony Ericsson  committed to making cost savings of Euro 300 million over the next twelve months, which includes a total headcount reduction worldwide of around 2,000 people (including both employees and consultants).

Sony Ericsson confirms that today internal announcements were made about which sites and functions would be affected by these headcount reductions. There will now follow a period of consultation between local management, employees/consultants and employee representatives to determine which positions at each of the affected sites will be eliminated.

More information regarding Sony Ericsson’s global alignment plans will be shared at the time of its Q3 2008 financial results on 17 October.