Sony Ericsson profit tumbles, job cuts on tap

AP

Mobile phone maker Sony Ericsson Mobile Communications AB posted a 97-per-cent drop in second-quarter profit yesterday and said it would slash 2,000 jobs worldwide to cut costs. The Telefon AB LM Ericsson and Sony Corp. joint venture blamed the earnings drop on tougher market conditions, higher development costs and negative effects from exchange rate fluctuations. The company said it would cut 2,000 jobs within 12 months as part of an effort to reduce operational costs by €300-million ($478.5-million) per year. Profit in the quarter fell to €6-million, down sharply from €220-million in the same period a year ago. Sales dropped about 9 per cent to €2.8-billion, from €3.1-million last year. ERICB (Stockholm) rose 2.5 kronor to 72.30 kronor ($12.20). 6758 (Tokyo) fell ¥80 to ¥4,310 ($40.53).