Sony Ericsson recognises 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. The measures that are being taken by Sony Ericsson are aimed at becoming a faster, more agile and more cost efficient organisation.
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.
The company will soon be axing 450 employees at its North American headquarters as part of a large reorganization, with most everyone knowing by the week's end whether they'll stay or go. According to Aldo Ligouri, Sony Ericsson's head of global communications and public relations, the RTP cuts are "part of company-wide changes that Sony Ericsson announced in July," and in whatever context, he added that "this is our map of how we see things moving forward." Just to put things in perspective, the outfit only has about 750 workers in the North Carolina-based facility, which is primarily seen as an R&D hub.
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