Sony Ericsson profit tumbles, plans to cut 2K jobs

STOCKHOLM, Sweden - Mobile phone maker Sony Ericsson on Friday posted a 97 percent drop in second-quarter earnings and said it would slash 2,000 jobs worldwide in a move to cut costs. The LM Ericsson and Sony Corp. joint venture blamed the earnings decline on tougher market conditions, higher development costs and negative effects from exchange rate fluctuations.Company spokeswoman Lisa Canning in London said the company would cut 2,000 jobs "within the next 12 months" as part of an effort to reduce operational costs by 300 million euros ($470 million) per year.In a statement, Sony Ericsson President Hideki Komiyama said his company estimates restructuring charges to "be of the same magnitude as our reduction in operating expenses."Net profit in the quarter fell to 6 million euros ($9.5 million), down sharply from 220 million... [read full story]