Toshiba and Sony Ericsson Announced Thousands Of Job Cuts

Two major electronic giants Sony Ericsson and Toshiba announce major job cuts to save the firms in face of global economic crisis. Toshiba said 3,900 contract workers would be cut by March 2010 as the company has to deal with growing losses. Sony Ericsson says it would slash at least 2,000 jobs to secure 400 million euros ($523 million) of savings.

The decision came after the company faced a loss of 293 million euros ($384 million) in the first three months of this year because of the recession that is effecting mobile phone demand.

Toshiba said it might have lost ¥350 billion ($3.5 billion) instead of the 280 billion yen originally expected, beacuse of worsening recession.

Sony Ericsson President Dick Komiyama said "We are aligning our business to the new market reality, with the aim of bringing the company back to profitability as quickly as possible,"