Sony Ericsson will take a 200m euros charge in order to shed the 2,000 jobs and implement the cost saving programme.The firm said over the past 12 months the average selling price of its units had fallen by one euro to 120 euros.
The news comes a day after Nokia, the world's largest mobile phone maker, reported a 90% fall in profits for the first quarter of 2009.
Sony Ericsson, the world's number four mobile phone maker, said it had shipped 14.5 million phones during the first quarter, a decrease of 35% compared with the same period last year.
Sales for the quarter were 1.7bn euros, a decrease of 36% from a year ago.
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