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Sony to Terminate 800 Employees in China

| Nov 06, 2014 06:29 AM EST

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Japanese international corporation Sony has decided to terminate around 800 employees in China in accordance with the conglomerate's plan to decrease workforce size in order to catch up with competitors in the mainland.

After the corporation's downsizing announcement, Sony Mobile's employees in China convened at the company's headquarters on Nov. 4 to stage a rally. The workers voiced out their demands for higher compensation and to make the termination process known to the public.

Sony Mobile's Oct. 30 announcement stated that the firm will halt the development and production of Chinese-targeted smartphones. Instead, Sony is planning to set up a more lucrative system of operation under a new administration.

Sony's mobile industry sales have been taking a turn for the worst. According to the international company's combined financial reports, Sony observed a net loss of $785 million in the second quarter of this year, a turnout resulting from poor smartphone sales.

Sony Mobile is not the only firm to implement downsizing plans in China. Multinational mobile manufacturers Motorola and Nokia also decided to terminate employees in the country.

According to online news portal Sina, one possible reason for the huge company layoffs is the great deal of market research being done domestically. 

Amid the controversies and rumors surrounding Sony Mobile, the firm denies that it will be abandoning the Chinese market.

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