Sony's upcoming downsizing will mostly affect units from China. (Photo : Reuters)
Sony has announced that it would cut down employees from its mobile division. An estimated 1,100 employees would be affected by the further downsizing of the Japanese tech firm, with most of the affected coming from its China unit.
The layoffs would see the company's mobile division reduced by 28 percent to 5,000 workers by March 2016.
The company behind the Xperia smartphone has continued to struggle to get its footing from rivals Apple and Samsung that continue to dominate the mobile market.
Since Kazuo Hirai became the company's president and CEO, the tech firm has decreased its forecasts six times as profits continue to be on the red.
In fiscal year 2014, the company led by Hirai has projected only 39.2 million units for its smartphone products sold in China. The number was 20 percent lower than its projection for the previous year.
Sony attributed the losses to competition in the Chinese market with local manufacturers.
The Japanese firm would no longer create devices and other units, which target China consumers, as a result of the local competition.
But in the third quarter of the fiscal year 2014, a 28.7-percent growth in sales was reported, with most of the profits coming from its other business units.
The ailing company continues to do well on its gaming and sensor imaging divisions, thanks to the success of thePlayStation.
Chief financial officer Kenichiro Yoshida stressed the company's plan to adhere to its approved reorganization.
"We said that we will carry through structural reforms, that there would be no sacred cows," he said. "It is taking time, but I think we may be starting to see results."
The latest job cut announcement does not include the 1,000 other workers Sony laid off in Nov. 2014.
