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Sony Ericsson to close RTP site; 420 jobs to be lost

Wednesday, November 18, 2009
(Updated 1:49 pm)

RALEIGH (AP) — Cell phone handset maker Sony Ericsson will move its North American headquarters from North Carolina to Atlanta and close a half-dozen sites worldwide as it retrenches against what it expects will be a tighter market and cuts about 1,600 jobs globally.

The joint venture between Sweden's LM Ericsson and Japan's Sony Corp. will consolidate product development operations by closing sites in Research Triangle Park; Seattle; Miami; San Diego; Kista, Sweden; and Chennai, India, spokeswoman Stacy Doster said.

The site closures are new elements of a plan announced in April to cut worldwide staff of 10,000 by 20 percent at the joint venture between Sweden's LM Ericsson and Japan's Sony Corp., Doster said. About 400 jobs have been cut since then and about 1,600 remain to meet that goal by the middle of next year, she said.

The cost-cutting follows the loss of 2,000 jobs last year.

The 8-year-old company has about 425 workers left in Research Triangle Park after shedding hundreds of jobs in the past year. Operations include customer support, customers service, sales, finance and research and development.

Doster said she did not know how many were employed at other locations the company planned to close. She also did not know how many would be added in Atlanta when that site takes over North American headquarters functions.

"There's a project team looking at what makes sense in what areas of the business," Doster said. "We've got to figure all that out across the whole organization."

Atlanta was chosen in part because of its proximity to AT&T Inc., one of the company's largest customers, Doster said. The city also is desirable as a "gateway into Latin America" because of its international connections through Hartsfield-Jackson Atlanta International Airport, she said.

Product development would be consolidated in Sony Ericsson operations in Redwood Shores, Calif.; Lund, Sweden; Tokyo; and Beijing, Doster said.

The company announced last month that its losses worsened to euro164 million ($245 million) amid falling sales in the third quarter, up from a euro25 million ($37.25 million) loss in the same period a year ago. Sales during the quarter dropped by more than 40 percent.

Sony Ericsson said its share of the global handset market came to around 5 percent in the third quarter, compared to 38 percent for market leader Nokia Corp.

Comments

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Beachwalk

November 18, 2009 - 11:33 am EST

It that "stimulus" bill making you feel stimulated yet?

This is change we can do without.

aintme

November 18, 2009 - 11:37 am EST

Do you honestly think this wouldn't have happened under McPain and Failin'? If so, you need more than stimulus.

Beachwalk

November 18, 2009 - 12:46 pm EST

No, I do not think it would have have under McCain.

Under a McCain stimulus, money would have actually been used to stimulate businesses to hire and increase production, unlike the little messiah's plan. The little messiah promised unemployment wouldn't go above 8% and would create 3 million new jobs. Unemployment is now above 10% and continues to go up and more than 3 million jobs have been lost since Stimulategate. All that Stimulategate has done is pay off democrat supporters, like the labor unions.

holland4

November 18, 2009 - 12:51 pm EST

The Chosen One can do no wrong. If the jobs had stayed, it would have been because of the spendulus. When they go, "it would have happened anyway."

Denial ain't just a river in Egypt.

tuffi

November 18, 2009 - 12:49 pm EST

If you don't even know the correct names, please don't show your ignorance and comment. Palin is the surname of the second individual. We'll never know about Palin, because we have Obama, gee aren't we lucky?! A real loser and know nothing. Oh well all of the equally intelligent people (like you) who voted for him are embarrassed now.

tbench

November 18, 2009 - 3:04 pm EST

Hey the only thing Barrack Hussein Obama has stimulated is himself.

r u serious

November 19, 2009 - 3:14 pm EST

Some of you talk like this thing happened overnight.... Talks about closing probably started the same time the stimulus package was put together. That was under a different administration

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