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Sony Mobile to move headquarters to Japan & cut 1,000 jobs

Sony Mobile is introducing a series of global operational changes to boost its profitability, the company has said.

Most notably, the company, which was formed after Sony’s takeover of Ericsson, is moving its corporate headquarters from Lund, Sweden to Tokyo, Japan as of October this year. It is also making changes to the structure of its various development sites, including one in Beijing, in order to ramp up efficiency.

Sadly, some job cuts come with the territory. Sony Mobile has said it will cut 15 per cent of its workforce, meaning some 1,000 employees will be without jobs by the end of March 2014. Though the company’s Lund office will remain open, with a focus on software and application development, an estimated 650 positions will be collateral damage in the headquarter shift later this year.

“Sony has identified the mobile business as one of its core businesses and the Xperia smartphone portfolio continues to gain momentum with customers and consumers worldwide,” said Sony Mobile president and chief executive Kunimasa Suzuki in a statement.

“We are accelerating the integration and convergence with the wider Sony group to continue enhancing our offerings, and a more focused and efficient operational structure will help to reduce Sony Mobile’s costs, enhance time to market efficiency and bring the business back to a place of strength,” Suzuki added.

News of the changes come as Sony faces difficulties competing in the consumer electronics market, as the likes of Samsung gain ground in mobile, TV, and component sales.