Sony Ericsson has confirmed that it has experienced a much larger financial loss than expected for the past quarter which has resulted in the company now talking about cutting jobs as part of a raft of new cost reduction plans as the company expects the market to shrink by 5% this year.
The damning figure was the recently announced 261 million euro pre-tax loss in the three months to the end of December. That should be compared to a predicted loss of 77 million euros. The hard times can be best illustrated by the previous year's figures which showed a profit of 501 million euros.
"Maintaining the third position in the worldwide ranking achieved in the third quarter of 2008 will be very difficult for Sony Ericsson," research group Gartner told the Reuters website. "We believe that 2009 will be a deciding year for Sony Ericsson as it battles between profitability and market share growth."
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