Ericsson may cut 14,000 jobs, says report

Ericsson may cut 14,000 jobs, says report
Business news |
Telecommunications equipment supplier Ericsson may cut 14,000 jobs from its European and Latin American operations, according to Swedish newspaper Svenksa Dagbladet.
By Peter Clarke


Ericsson has a restructuring plan in place but made a net loss of SEK 1 billion (about $125 million) on sales of SEK 49.9 billion (about $6.3 billion) in the second quarter of 2017. Those sales were down 8 percent compared with the same quarter a year before.

The company has posted a statement that neither confirmed nor denied the job losses.

“In connection with the Q2 report 2017, Ericsson communicated that the company, in light of the current market outlook, will accelerate the planned actions to ensure that the target of doubling the 2016 operating margin beyond 2018 can be met. Actions will be taken primarily in service delivery and common costs, but do not include R&D. The plan is to implement cost savings with an annual run rate effect of at least SEK 10 billion by mid-2018, of which approximately half will be related to common costs.” The statement concluded: “Ericsson has not communicated which specific units or countries that could be affected. It is too early to talk about specific measures or exclude any country. As Ericsson executes on these plans to save costs, the company will communicate this, and to what extent employees could be affected.”

The Svenksa Dagbladet report said that as many as 25,000 employees – approximately one quarter of the workforce – could be affected by CEO Borje Ekholm’s planned restructuring, which would effectively see Ericsson pulling out of numerous countries where its sales are dwindling.

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Svenska Dagbladt report

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