Sony Ericsson to shut Farnborough office

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Sony Ericsson is to close its Farnborough base and move 45 staff to its global headquarters in Hammersmith, London, by the start of next year as part of €880 million ‘transformation programme’

Sony Ericsson will close its office in Farnborough, Hampshire, and move 45 staff to its global headquarters in Hammersmith, west London, by the start of next year.

The company will look to move all staff from the office into the London base. It stressed the move is not to reduce its headcount, despite the cost savings associated with the relocation. It said it is offering staff incentive packages to encourage them to work in the capital.

The staff across Sony Ericsson’s sales, marketing, logistics and finance teams were informed of the plans this morning. The Farnborough office will close on December 31, 2010, with staff relocated to Hammersmith for January 4, 2011.

Up to 140 staff will be based at its Hammersmith site should all the Farnborough contingent choose to relocate. Staff who choose not to relocate will be replaced, said the firm.

Sony Ericsson started a major cost-cutting programme in mid-2008, under the stewardship of former president Dick Komiyama, succeeded by in October last year ex-Ericsson US chief Bert Nordberg.

The company said as part of its Q2 2010 results last week the programme is in its final stages and on target to reduce annual operating expenses by €880 million by the end of the year. Since the start of the programme, Sony Ericsson has reduced its global workforce by around 4,000 people to reach a total of around 7,800 by June 30, 2010.

In a statement Sony Ericsson said: “Sony Ericsson confirms that it intends to relocate its UK and Ireland business operations, currently based in Farnborough, to its global headquarters office in Hammersmith, London, from January 2011. As a result, Sony Ericsson’s Farnborough office will close in December.

“The UK market is an important market for the company, and the UK and Ireland team has a strong track record of success. Bringing together this successful, focused team within the company’s global corporate functions in one location will help create an even greater dynamic workforce.

“Sony Ericsson will provide assistance to help employees make the move to the office in Hammersmith. After the relocation Sony Ericsson expects to house around 140 employees at its Hammersmith office.”

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