After the second quarter Sony Ericsson tries to reduce its costs by sacking two thousand employees. Lisa Canning, spokeswoman for the company has reported in London about the cutback plans of the company, which might mean 300 million euro savings per year for the company. During the next twelve months two thousand employess will be sacked, but it is not yet known which departments will be affected by the process. Sony Ericsson's net profit has fallen from 220 million euros (same period last year) to 133 million euros. The company has accused the unfavorable situation on the market and the conversion rates for the fallback.

The number of handsets shipped by the manufacturer has also decreased compared to the same period last year, as they have sold only 24.4 million cell phones and the average price was also lower, €116 EUR. Sony Ericsson expects the same amount, 10%, of global market expansion as Nokia, but this mostly affects the market of cheaper handset, where the Japanese-Swedish manufacturer doesn't have such a strong presence. Sony Ericsson's research and development costs have increased during last year with 22 percent, to a value of 344 million euros. The main reason for this might be the new Windows Mobile and XPERIA platform.

The manufacturer, which is now only the fifth on the market, is about to introduce a new Walkman family and the distribution of XPERIA X1 smartphones and Cyber-shot handsets with an 8.1 megapixel camera is also coming soon. These might improve the company's financial balance a lot.