Ericsson Says ‘Merry Christmas’ With 950 Jobs Cuts
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A bad day for staff at Swedish mobile handset maker and networks company Ericsson (NSDQ: ERIC), which is making 950 staff redundant in Sweden—about five percent of its domestic workforce—as part of an additional round of cuts on top of its on-going cost reduction scheme.
SEE ALSO: Ericsson Becomes Dominant Infrastructure Player In North America
The company still aims to save SEK10 billion (£860 million) by the middle of next year from 5,000 other job cuts, as FT.com reports.
It’s a signal of intent from CFO Hans Vestberg, who was appointed CEO and president in the summer and takes over from Carl-Henric Svanberg in January.
The reasons behind the cuts are the same we’ve seen across the mobile sector: fewer people are needed to make the latest gadgets and to improve network connectivity. Ericsson is shutting a factory that makes base stations for 3G mobile networks and decided other sites can carry out the work. Similarly, Nokia (NYSE: NOK) cut 330 R&D jobs in Scandinavia as the company moves to less staff-intensive research and production regime.
However, internationally Ericsson is still growing and took on 8,500 staff in the U.S. in Q3 as part of the acquisition of Nortel Networks and an outsourcing deal with Sprint.
Posted In: Mobile, Countries, Europe, Sweden, Scandinavia
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