Sony has quadrupled its annual loss prediction and cancelled dividend payments for the first time in more than five decades following a write-down on its smartphone business.
The Japanese electronics firm, which is due to announce details of a cost-cutting plan at its mobile communications division, said weak sales would result in a $1.7bn (£1.04bn) impairment charge in its current quarter.
The company admitted this would result in its annual loss forecast soaring to $2.1bn (£1.3bn) from an initial estimate of $466m (£285m).
It blamed intense competition, especially from Chinese rivals, with the humiliation compounded by its decision to halt dividends for both the half and full-year.
Sony's president Kazuo Hirai said: "This is the very first time we ever eliminated a dividend.
"For more than 50 years we always paid a dividend. The entire management takes this very seriously."
He confirmed the cuts at its mobile business would see roughly 1,000 staff losing their jobs but gave no further information.
Sony has been trying to reshape its business after years of losses but repeated promises of turnarounds have failed to deliver though gaming has picked up.
The smartphone arm has proven particularly tough for Sony with Apple and Samsung dominating at the top end while Chinese and other Asian manufacturers hog the market for cheaper phones - devices that are proving popular in fast-growing developing countries.
Hirai admitted Sony had not kept pace with the industry.
He added: "The Chinese smartphone manufacturers have made great strides and are expanding outside their own market, and this has caused a shift in the pricing.
"Meanwhile, Apple and other manufacturers are launching strong, innovative products. The changes are very rapid and dramatic".
Hirai said Sony expected a return to profit in 2016 by cutting costs and focusing on higher end devices.
It plans three Xperia Z3 smartphone and tablet models, with its signature waterproof capabilities, for the coming Autumn.
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