Less than four months after cutting 4,500 jobs in its attempts to return to profit by the end of this financial year, Toshiba yesterday announced a further 3,900 redundancies, and predicted a record annual loss.

But depite the downturn continuing to take a heavy toll on Japan's high-technology giants, Toshiba hinted that recovery might be on the way by predicting operating losses of 250 billion yen (£1.7 billion), a more optimistic outlook than it took in January, when it forecast a Y280 billion loss.

The group said that the price of flash memory chips used in MP3 players and mobile telephones was improving because producers had cut production, but demand remained weak.

Toshiba's update provided a glimmer of hope for the embattled computer sector, particularly after Intel's statement this week that it saw signs of a bottom in PC sales. Toshiba forecast a return to operating profit in the financial year starting this month, aided by a previously announced Y3 billion cost-cutting plan.

However, it added that the company's net loss would be worse than forecast at Y350 billion, rather than Y280 billion, because of a Y85 billion write-off in deferred tax assets. Toshiba shares closed up 4per cent after the announcement.

Sony Ericsson said yesterday that it would cut a further 2,000 jobs after a slump in mobile phone sales forced it into a pre-tax loss of €358 million (£315 million) in the first three months of 2009. Its results came a day after Nokia, the world's largest mobile phone maker, reported a 90 per cent fall in profits for the first quarter.

The group's latest job cuts are on top of 2,000 previously announced as part of another savings drive that is now completed. Executives did not say where the cuts would be made, although the business employs about 250 staff in Britain. One site in Manchester, which used to employ 500 people, is in the process of closing.

Sales at the world's fourth-biggest mobile phone maker fell to €1.7 billion, from €2.7 billion last year, mainly because of continued weak consumer confidence and de-stocking. The business said that over the past 12 months the average selling price of its units had fallen by €1 to €120.

Sony Ericsson said it planned to further reduce operating expenses by mid-2010 in an effort to save €400 million. It expects the global handset market to contract by at least 10 per cent in 2009, from 1,190 million units in 2008.

Dick Komiyama, president of Sony Ericsson, said: “As expected, the first quarter of this year has been extremely challenging for Sony Ericsson due to continued weak global demand. We are aligning our business to the new market reality with the aim of bringing the company back to profitability as quickly as possible.”

Some analysts have criticised Sony Ericsson for focusing too much on the more expensive mid-range and premium phones, and missing opportunities in emerging markets.

The average selling price of Sony Ericsson phones was almost double those sold by Nokia, the market leader.

The results were in line with analysts' expectations of a €371 million loss but did not include €19 million in restructuring charges. The figures marked the third consecutive quarterly loss for the company, which reported a profit of £89 million in the same period in 2008.

Sony Ericsson, owned by Ericsson and Sony Corporation, said that it would take an additional €200 million in restructuring charges because of the new programme.

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