Ericsson cuts 2,200 jobs in Sweden
Ericsson will cut 2,200 positions in Sweden, mainly within R&D and Supply, as part of its latest cost saving programme.
The company said in November that it planned to cut costs by $1.05 billion (SEK 9 billion), with full effect in 2017.
The programme includes both headcount reductions as well as savings in external costs across the company’s operations globally. The measures will incur an additional $350-$470 million (SEK 3-4 billion) in restructuring costs during 2015-2017.
“It is estimated that half of the savings will reduce Ericsson’s operating expenses and the other half will impact cost of sales,” said the company. “Accelerated efficiency measures will primarily relate to five key areas: portfolio streamlining and ways of working in R&D; structural enhancements in IS/IT; accelerated service delivery transformation; supply chain efficiencies; as well as structural efficiency gains in G&A.”
Ericsson had approximately 117,000 employees at the end of September.