8:45 AM -- Sony Ericsson Mobile Communications said it will cut 2,000 jobs out of its 12,000 employees this year as part of a plan to reduce annual operating expenses by €300 million (US$476 million), after posting an operating loss of €2 million ($3.2 million) in the second quarter. (See Sony Ericsson Reports Q2.)

Sony Ericsson said competition and a slowdown in sales of mid- to high-range handsets were to blame for the dismal results in the second quarter. The company does not have a big enough business in low-end phones for emerging markets, which could help it to weather the economic slowdown in mature Western markets. (See Sony Ericsson Lowers Forecast, Handset Growth Slows, and More High-End Pain.)

— Michelle Donegan, European Editor, Unstrung