Engadget is reporting that Sony Ericsson will be shutting down four facilities globally, including one in Chennai. It goes further to add that the troubled handset vendor is also planning to lay off as many as 2,000 more employees.

We checked up with our sources here and the company has indeed informed its employees in Chennai about the closure.

As far as India is concerned, we have also learnt that a key, senior member of its India operations has also put in his papers. With Sony Ericsson not defending its turf in the sub-Rs 5,000 market in India, it is going to be really tough for the handset vendor to compete as far as mindshare, marketshare and shelf-space is considered. It remains to be seen if its preference of margins over volumes will prove to be its saviour in the long run.