Sony's Mobile Woes Deepen Amid Cost-Cutting Measures and Layoffs

In recent developments, Sony is facing significant challenges in its mobile division, which has been experiencing sustained losses and a decline in market share. In response, the parent company has outlined a recovery plan that involves halving the division’s expenses over the coming years. This initiative reflects the company's strategic move towards cost reduction and efficiency improvements to navigate through these difficulties.

The move has already resulted in the decision to lay off 200 employees at Sony Mobile’s office in Lund, Sweden. This office, which used to be the former headquarters of Sony Mobile before relocating to Tokyo, still employs approximately 1,200 people. It has been reported that about 800 of those employees are directly hired by Sony Mobile, with the remaining workers being contractors. Although specific details regarding the layoffs have not been fully disclosed, this action represents the first step in addressing the ongoing financial issues within the mobile department.

Despite the potential workforce reduction, Stefan Olsson, who oversees the Lund office, emphasized that cost reduction does not necessarily equate to layoffs. Sony is currently evaluating its business structure and the specifics of the implementation remain under review. The mobile division's shrinking sales, dropping from 13.5 million phones last year to an estimated 10 million this year, underscore the urgency behind these strategic adjustments.

Furthermore, Sony’s interest in the intersection of gaming, anime, and broader media developments is illustrated by its potential acquisition of Kadokawa Group, the parent company of FromSoftware. This move could bolster Sony's cross-media IP development between its gaming and anime sectors, aligning with its broader objective to diversify and strengthen its entertainment offerings.