Sony Ericsson may be laying off another potential 2,000 workers some time soon in an effort to restore profitability at the troubled mobile phone maker. The move to axe 2,000 staff and contractors in 2009 from the 10,000-strong workforce follows hard on the heels of last year’s removal of 2,000 jobs. It underlines how Dick Komiyama, Sony Ericsson’s president, is developing a reputation as an aggressive cost-cutter.

The handset maker owned by Japan’s Sony and Sweden’s Ericsson on Friday reported a net loss of €293m ($381m) for the first three months of 2009, because consumers are buying fewer mobile phones in the global recession.

Mr Komiyama last year set out plans to reduce Sony Ericsson’s annual operating expenses by €480m, partly by cutting 2,000 jobs, or 17 per cent of the workforce. All the world’s leading handset makers are braced for falling sales in 2009, but Sony Ericsson is feeling more pain than larger rivals such as Nokia, Samsung and LG.

Sony Ericsson is experiencing a deeper unit sales decline than Nokia partly because it does not make cheap mobiles. Consumers are “trading down” to low-priced mobiles . Sony Ericsson is also suffering because it has a weak range of smartphones – mobiles that double up as mini computers – compared with traditional rivals and new entrants such as Apple.

Sony Ericsson reported revenue of €1.7bn for the three months to March 31, down 36 per cent on the same period last year. The net loss of €293m compared with a net profit of €133m in the first quarter of 2008.

(Source) FT.com