Light Reading

Ericsson Axes 1,000 More Staff

Ray Le Maistre

Ericsson AB (Nasdaq: ERIC) caught everyone by surprise today with news of staff cuts in Sweden that will see more than 900 employees lose their jobs.

The majority of the cuts, which aren't part of the previously announced headcount reductions, will see 856 jobs go at a 3G base station plant in Gävle, while 90 staff are being laid off in Borås, reports The Swedish Wire.

Ericsson announced 5,000 job cuts at the beginning of 2009, including 1,000 in Sweden. Those reductions have already been made. (See Ericsson Soars on Strong Q4, Outlook.)

The Swedish giant recently announced third-quarter financial results that showed a year-on-year dip in revenues and a massive drop in profits. (See Pressure Tells on Ericsson's Q3.)

Other parts of the vendor's business are also grappling with tough trading conditions and are also reducing their staff numbers. Mobile chip joint venture ST-Ericsson has just announced that up to 600 positions could be cut, while handset firm Sony Ericsson Mobile Communications has spent 2009 implementing cost reduction plans initiated last year. (See ST-Ericsson Plans Further Cutbacks and Sony Ericsson Reports Q3.)

But Ericsson has also been adding to its staff numbers by acquiring various parts of bankrupt vendor Nortel Networks Ltd. , deals that will see staff added to the Ericsson payroll, particularly in North America. (See Ericsson Buys Nortel's GSM Biz Too, Ericsson: Why We Want Nortel's Wireless, and Ericsson Delivers Knockout Blow to NSN.)

Ericsson isn't the only major vendor looking to slim down its workforce, of course: Rival Nokia Networks announced a restructuring plan a month ago that could see as many as 5,760 staff lose their jobs. (See Nokia Siemens Revamps, Cuts Jobs.)

— Ray Le Maistre, International News Editor, Light Reading

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User Rank: Light Beer
12/5/2012 | 3:51:25 PM
re: Ericsson Axes 1,000 More Staff

Remember those bygone days when certain members of this list provided some warning as to the culture within Nortel... It looks like Ericsson has just taken a bit of a list. Hope there aren't any rocks ahead.

Also remember how certain other members were extolling the virtues and integrity within Nortel?

Finally, there was the mystery behind the abyss Nortel found itself in: Why? How?

I am saving my marshmallows for the Ciena/Nortel post honeymoon fun! You know the sound the toilet makes when everything goes down the tube? It's going to be spectacular watching that show of integrity.

Remember that companies rarely die of starvation, but indigestion often claims companies. Let's see how many companies the folks at Nortel can destroy. Cry havoc...

Lite Rock
Lite Rock,
User Rank: Light Beer
12/5/2012 | 3:51:24 PM
re: Ericsson Axes 1,000 More Staff

Merry Christmas to you too!

User Rank: Light Beer
12/5/2012 | 3:51:23 PM
re: Ericsson Axes 1,000 More Staff

Hey Stevery,

Thank you very much for the thoughts and support. Also be pleased to read that it isn't at all to feed the trolls, yes they do enjoy that type of gratification. We agree.

The consolation is that they are feeling quite a bit of pain. On balance, we also agree that they are the losers. Not only do they deprive themselves of the continued fruits of that labor, but they are too retarded to figure out that they are the cause of their misery. This is another characteristic of the pathology. That is the most enjoyable part of the Nortel failure, it's a guaranteed sequel.

So the comments leveled at Nortel and those types of folks are 100% fair and they are a service to society. Ericsson and Ciena and others have vested interest in heeding these warnings. Sure, their corporate culture may be as flawed. At least they have a fighting chance if there is good in there. If not, they are getting what they deserve. If other good people band together, these types can be educated.

For some time, I applied the sound philosophy of ignoring the ignorant. These folks took it beyond the fair, so I opted to fight fire with fire. When they relent, there will be a reevaluation at my end. Until such a time...

This is the paradigm being explored and it is working quite well. Evil grows while good people do nothing. Therefore, evil is going to have a run for it's money.

When comparing the losses suffered versus what the opposition is enduring, their losses are at least three to four orders of magnitude greater and unending. This also includes the missed opportunities that are inherently difficult to evaluate fairly. The fantastic part is that it is very simple to expose these retards for what they are. The added plus is that they are clueless, they don't even realize how much they are damaging themselves. Look at Nortel's failure, there isn't even the desire to figure out what hapenned to avoid this type of disaster in the future. That is failure on an unimaginable scale: they don't want to fix it!

At the moment, it is not stewing, it is still very much self-defence. They may opt to do what they are going to do, but they'll think twice knowing that there is going to be cost attached.

Meanwhile, it hasn't prevented other dreams from becoming realities. The creativity has to go somewhere and it is finding a voice.

User Rank: Light Beer
12/5/2012 | 3:51:23 PM
re: Ericsson Axes 1,000 More Staff

Yes, a very Merry Christmas... It's nice to get these holiday wishes.

You know, way back when the times were good, a lot of folks at Nortel thought that helping my career meant giving to the Salvation Army.

Thanks to Nortel and many of their Legion who are still enriching themselves with my work, there will never be nice family times at Christmas for me. They can afford families, houses, nice cars. They certainly don't miss the opportunity to take away from my reputation, still to this day. I don't think there has been a day since then, much less a Christmas, without the thought that these folks might put another stick in the wheels.

So when you are going to worship this holiday season and they talk about the guest of honor. Remember how human nature chose the thief Barabas. Instead of using this opportunity to look unfavorably at another culture, ask yourself if there is something in human nature that entices us to pick on people who do good and contribute to society. Ask yourself if it's okay to take advantage of another person and to make up for it by giving to charity.

So, yes, there isn't a lot of sympathy for the folks at Nortel, including those who stood idly by, or who acquiesced with their silence. There is even less sympathy for those who joined in the revelry.

For my part, there is solace in the misery Nortel is enduring and perpetuating. These folks are destroyers and they are getting their just reward. By way of example, they sacrificed those who didn't participate in the pension plan by selling them away and behold, they lost their pension.

As you ask for empathy, know that you can't receive what you cannot give. What is funny is when running into these folks from time to time, it is very easy to read into these folks that they know they've done something wrong.

Personally, I can't wait if there is a review at the pearly gates...

So good luck Ericsson, you're going to need it! Understand that the culture you've purchased believes that ethics are an inconvenience for other people and a strategic advantage. If you think that leads to success, more luck will be needed, or a bailout, start now.

User Rank: Light Beer
12/5/2012 | 3:51:23 PM
re: Ericsson Axes 1,000 More Staff
Hey "inauniversefarfaraway" dude you are one bitter ex-nortel employee. This article is about "ERICSSON". But I guess you needed somewhere to post your rant.

Merry Christmas, you need it.
User Rank: Light Beer
12/5/2012 | 3:51:23 PM
re: Ericsson Axes 1,000 More Staff

ask yourself if there is something in human nature that entices us to pick on people who do good and contribute to society.

inauniversefaraway:  First, keep in mind that I have been a regular critic of Nortel (among others).  I was optimistic when Z took over, but we all know how that played out.

Second, I have admired many of your posts.

That said, please take this in the spirit I am writing it:  You should try to move on. 

I have had folks take my work too.  Some took it successfully and completely screwed me over.  Others did not notice that I had built in trap doors. (Why build in trap doors?  Because you start developing a sense of when certain folks are insecure and lacking a good moral compass.  You start being able to predict who will steal.)

By stewing, you are giving the pathological types (from your quote at the top) exactly what they feed on.  Not to say that there isn't something to be gained by working it out by writing here, but my sense from your post is that it's deeper than that.

there will never be nice family times at Christmas for me. They can afford families, houses, nice cars.

Sincerely:  I wish you a Merry Christmas (not that it means much coming from an atheist.)  Money makes many things easier, but it turns into a goddamn distraction and is the source of a helluva lot of negative energy.

The true currency is time.  If you can spend that one well, I promise that all the other currencies will take care of themselves.

Good luck to you.

User Rank: Light Beer
12/5/2012 | 3:51:21 PM
re: Ericsson Axes 1,000 More Staff
<div>I am going to support you on this posting.&nbsp;&nbsp;</div>
<div>Anyone that can write such posts must have been screwed big time. So "don't move on"... write a book, blog them to death do whatever you can to get within the confines of the law&nbsp;of course. </div>
<div>The fall of any organization is due to the internal politics and not by its enemies.</div>
<div>MERRY xmas </div>
User Rank: Light Beer
12/5/2012 | 3:51:20 PM
re: Ericsson Axes 1,000 More Staff

"ask yourself if there is something in human nature that entices us to pick on people who do good and contribute to society.

inauniversefaraway: &nbsp;First, keep in mind that I have been a regular critic of Nortel (among others). &nbsp;I was optimistic when Z took over, but we all know how that played out.

Second, I have admired many of your posts.

That said, please take this in the spirit I am writing it: &nbsp;You should try to move on. "

Very well said, and I am definitely agree with Stevery on this one... [my words] you are hurting yourself (A LOT) by continuing to stew and fester on this, and you aren't hurting the people you intend to hurt by targeting 'Nortel' in this abstract way. &nbsp;

While I enjoy sparring with you on occasion on this board, I am always left feeling that you are in a very bad place.

Think of the saying: "Living well is the best revenge." And focus on the prior... &nbsp;

User Rank: Light Beer
12/5/2012 | 3:51:19 PM
re: Ericsson Axes 1,000 More Staff


Thank you for your encouragement. Yes, there were negative elements in there. Beyond the material and the superficial:

The serious part is when people tell you they want your scalp. It's one thing when they want your stuff, whatever that is, but it's a whole different ballgame when they want your skin.

This is the difference, there is no exaggeration. As stated, the folks at Nortel are in this because the acquiesced or participated. If you are within Nortel and this grates, you should know who you are working with.

Like you, I thought they were kidding or exaggerating when they made their representations. My initial thoughts were to the effect that nobody would take these idiots seriously, they came across as madmen, or would be perceived as such if they ever uttered such absurdities aloud. Ignoring the ignorant proved to be the wrong tactic. They understand the concept of death by a thousand cuts.

Moving on has been done long ago. It is also very much about making sure they get the point that there is a heavy price for pursuing their objective. Although they are hypocrites and unlikely to engage in outwardly violent behavior because they are also cowards, they are dangerous nonetheless.

Could I care less about the stuff? Perhaps. But in the case of going after somebody with a mind to destroy, that is quite another matter. I too didn't take it very seriously at first.

Meanwhile, it is very much about living well. Some modest and charitable endeavors have garnered national accolades. It is doubtful they will be remembered for anything more than greed, incompetence, theft or failure.

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