Following another unsuccessful year in the mobile business, Sony is looking to remove 1,000 staff members of staff from the mobile division to avoid further losses.
The new report comes after Sony contemplated selling the Xperia division to focus on music, services and gaming. It looks like CEO Kazuo Hirai has decided to wait another year before potentially selling off the brand.
It is not the first time Sony has had to downscale its mobile business. In early 2014 the Japanese based company announced 1,000 redundancies to staff.
The Xperia Z3 and other devices launched in 2014 failed to impress the U.S. and European audience, Sony's two largest buyers alongside Japan.
The competition from Samsung, LG and HTC has put the once prominent mobile manufacturer in a tough spot, and it has been unable to regain its former glory under the partnership with Ericsson.
Sony's mobile business is not the only asset in trouble, its BRAVIA TV division is also under fire for another poor quarter. In the report on the potential sale of Xperia brand, Sony was apparently looking for a buyer to acquire BRAVIA as well.
Removing most of the hardware could limit Sony's portfolio in the connected devices world, but it hasn't shown much effort to connect its cameras, TVs and phones to other devices outside of Sony's own brand.
In between the failures Sony has found success with $40 million (£26 million) in revenue from The Interview online, 11 million PlayStation 4 sales and continued success in the music and movie industry.
The large investments in the 90s by Sony are starting to look dismal in its current portfolio, but with trims to the staff the company might be able to start working on more niche products (like a super high-end device) for customers, similar to OnePlus or HTC.