Sony Ericsson to shut Chennai R&D centre

Sony Ericsson has decided to phase out activities in six of its product development sites, across the globe, including the one in Chennai. The move is an extension of the company’s cost-saving measures.

The company’s official statement read, “As part of the programme started a year ago, Sony Ericsson will phase out activities in some of its locations worldwide and plans to reduce headcount globally by 2,000. Sony Ericsson is making changes to reduce costs and increase efficiencies. The principal aim of the company is to return to profitability as soon as possible. Sony Ericsson intends to complete its programme by mid 2010.”

The company announced a cost saving programme last year targeting reduction of €300 million, including a workforce reduction by the end of the first half of 2009. An extension to the plan was announced in April to target a annual operating expense reduction of €400 million to be completed by mid 2010.

According to reports, the company will move its North American headquarters from North Carolina to Atlanta and close six other product development sites in Chennai, and the Research Triangle Park in North Carolina, Seattle, Miami, San Diego and Kista in Sweden. The Chennai R&D centre was launched in 2007 with less than 100 employees. The centre now has about 60 employees. However, Sony Ericsson’s official spokesperson refused to divulge the exact headcount and the timeline for the closure of operations citing sensitivity of the issue as the reason.

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