Sony Cuts its Losses in The Smartphone Division: Decides to Cut Workforce by Half by 2020

Sony used to be one of the top brands when it came to phones and later on, smartphones. Starting from the Sony Erricson lineup, up to Sony Xperia, Sony gave a wide variety when it came to cellphones. Take the Xperia Play for instance. Sony incorporated its gaming and cellphone division to give something out of the box. While other manufacturers stuck to the status quo, Sony has always been different. Even today, Sony was the only manufacturer to bring 4K resolution to its devices and the first to introduce 960fps slow-mo.

Xperia Play
Xperia Play
Credits: Pocket-lint

Then What Happened?

Even though the previous paragraph boasts Sony’s positive points, it does not explain why it’s flunking in the market. While it continues to bring about new features, Samsung and Apple continue to capture the market. Perhaps this has to do with Sony’s price point. The premium price tag that comes along with it. That is coupled with the market it aims for. The Asian market is geared more towards Xiaomi and Huawei, both of which have the market in their hold.

Perhaps that is what lead Sony, to cut down losses and keep the division going. According to a report by Nikkei Asian Review, the company is shifting many of its employees in the cellular manufacturing division to a general electronics division. Not only that, a couple of employees are left with the option to retire. This sets a trend which confirms the report’s claim of the company letting go of half of its smartphone workforce. By 2020, the company aims at cutting its workforce of about 4000 to 2000.

This news came from a mile away. Given the sale levels, there cannot be much done besides cutting its losses short. The balance report for the company shows that there was a decrease of 50 per cent in sales from the previous year. Not only that, Sony continues to produce flagships which cost a fortune and are master of none. Perhaps Sony should focus more on budget devices rather than aim for the monopoly set by the likes of Samsung and Apple. Sony’s inevitable demise in the cellular market doesn’t seem unlikely if this is how the company progresses, just like LG.

Sarmad Burki
Sarmad Burki is a Mathematician and a Economist with a passion for all things gaming and tech. His academics and professional experience combined with tech and gaming adds to his skills giving him a unique ability to observe the tech and gaming industry from various prespectives.

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