Yesterday it was revealed that due to Sony Mobile’s inability to sell mid-range smartphones in significant quantities, the company will likely be posting a $2.1 billion net loss for FY 2014. Unfortunately for Sony fans, and more so Sony employees, the bad news does not end there. Previously, Sony was forecasting for a ¥50 billion loss but with the forecast now expanding to ¥230 billion for the fiscal year, Sony once again has to look internally to help save money and that means a reduction in its staff to the tune of 15% for the mobile division.

According to reports, Sony will be cutting 15% of its mobile staff, or around 1,000 jobs. It’s unclear how immediate the staff reduction will be, though it will likely be before FY 2015. Due to costs associated with layoffs, Sony’s $2.1 billion net loss could expand further. Sony plans to return to profitability by 2015 though they’ve been bullish about other aspects of their business like mobile where they believed they would sell 50 million smartphones in 2014. Since July, that number has been revised down to 43 million. When asked if he’s be stepping down due to Sony’s downward spiral, CEO Kaz Hirai responded:

 I am deeply sorry for shareholders and I, as a president, am taking this situation very seriously. I’d like to take responsibility by finishing implementing structural reform efforts in this fiscal year and returning the company to profitability in the next fiscal year. 

While electronics, the main business of Sony for half a century struggles against Apple, Samsung, and cheap manufactures from China, PlayStation and Sony Pictures continue to be a bright spot for the company.

(As many of you know, I run this site due to my passion for Sony and as always, my heart goes out to those who are affected by the impending layoffs.)

Discuss:

Will you be affected by the layoffs at Sony Mobile?

[Via WSJ]