The warning came on a day of gloom for the technology sector as weakening consumer demand prompted Microsoft to launch its first company-wide job cuts in its 34-year history with up to 5,000 jobs to go. Nokia also revealed a fall in 2008 profits and issued a gloomy forecast of a 10 per cent fall in global industry sales of mobile phones. In Korea, LG Electronics reported its first net loss in seven quarters as margins for its handsets and flat-panel TVs fell amid a price war.
Sony's forecast of a Y260bn ($2.9bn) operating loss in the year to March 2009 was worse than even the most pessimistic market forecasts, intensifying pressure on its management to turn the company round.