Ericsson to cut Swedish workforce by 1,550
07 November 2012 |
Swedish equipment vendor Ericsson has announced that it will cut approximately 1,550 jobs in its home market as part of a cost cutting initiative.
The reductions come after Ericsson’s profits fell 42% in the third quarter due to slower orders and a shift in business to less profitable contracts.
The vendor said that the majority of the cuts will be from its Networks unit with all job areas affected including sales, general and administration, research and development, supply and service delivery.
Ericsson has 17,768 employees in Sweden spread across 12 site groups. Only the vendor’s four sites in Falun, Hudiksvall, Kalmar and Katrineholm will be unaffected by the cuts.
"It is naturally a difficult message for our employees in Sweden," said Tomas Qvist, head of Ericsson's HR in Sweden. "We must ensure that we can continue to execute on our strategy to maintain our market leadership, invest in R&D and meet our customers' needs. To secure this we need to focus on reducing cost, driving commercial excellence and operational effectiveness. This will enable us to secure our future competitiveness.”
All employees affected will be informed in March 2013.