Light Reading

Ericsson Sheds 1,550 Staff in Sweden

Michelle Donegan
News Analysis
Michelle Donegan
11/7/2012
50%
50%
Repost This

Ericsson AB (Nasdaq: ERIC) is reducing its operations in Sweden and cutting 1,550 jobs in the country as part of its ongoing efforts to improve profitability. (See Ericsson Cuts 1,550 Jobs.)

The headcount reduction represents 8.7 percent of the vendor's 17,768 employees in Sweden, and 1.4 percent of its total global workforce, which was 109,214 at the end of September.

The vendor maintains that the reductions announced Wednesday do not signal a broader cost-cutting program. According to an Ericsson spokeswoman, the company is working globally to improve profitability through various activities, including job cuts in some markets. (See Ericsson Trims North America Workforce.)

Most of the job cuts in Sweden will be in the company's Networks business unit, but all parts of the company will be affected, including sales, general and administration, research and development, supply and service delivery.

That the Networks business will be hit hardest is no surprise because it is the biggest part of Ericsson's operation in Sweden in terms of employee numbers, and it is the unit that is having the toughest time financially. In the third quarter, Ericsson's revenues in its Networks unit were down 17 percent year-on-year, to 26.9 billion Swedish kronor (US$4 billion). (See Ericsson Feels Networks Squeeze in Q3.)

Ericsson's long-term goal is to return the Networks business to double-digit margins, but "we're a long way from that," said the company's spokeswoman.

Ericsson's head of human resources in Sweden, Tomas Qvist, explained in a statement that sometimes redundancies are "unfortunately inevitable."

He added: "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.

"Over the past couple of years we have been continuously driving these global efficiency measures across regions and units."

Ericsson isn't the only equipment vendor having to cut its workforce recently: Nokia Solutions and Networks is in the process of shedding 17,000 jobs globally, while Alcatel-Lucent (NYSE: ALU) plans to cut about 5,500 jobs. (See NSN to Cut 17,000 Staff, AlcaLu Job Cuts to Hit 5,500 and Euronews: AlcaLu Needs to Shed 10,000 More.)

— Michelle Donegan, European Editor, Light Reading Mobile

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Flash Poll
LRTV Documentaries
Cable Eyes Big Technology Shifts

4|16|14   |   03:02   |   (4) comments


US cable engineers are facing a lot of heavy lifting in the coming years, notes Light Reading Cable/Video Practice Leader Alan Breznick.
LRTV Custom TV
Maximizing Customer Experience & Assuring Service Delivery in an IP World

4|15|14   |   4:57   |   (0) comments


Steven Shalita, VP of Marketing, NetScout Systems, Inc., discusses the challenges cable/MSO operators face in assuring the delivery of new IP-based services. Key points include the value of proactively managing performance, and using rich analytics and operational intelligence to better understand service and usage trends, make smarter business decisions and ...
LRTV Documentaries
Bye-Bye DVD: Consumers Embrace Digital Video

4|10|14   |   04:17   |   (6) comments


Veteran video analyst Colin Dixon, founder and principal analyst of nScreenMedia, says research shows 56% are using digital video already.
LRTV Documentaries
Video: TW Cable Puts Multicast Gateways to the Test

4|8|14   |   04:13   |   (1) comment


Tom Gonder, a chief architect at Time Warner Cable, explains how its trial of multicast gateways is impacting IP-based video plans.
LRTV Custom TV
Managing & Monetizing Big Data in Operator Environments

4|7|14   |     |   (1) comment


At Mobile World Congress, Gigamon's Director of Service Provider Solutions, Andy Huckridge, and Heavy Reading Analyst Sarah Wallace discuss the 'big data' issues facing carriers and operators today.
LRTV Huawei Video Resource Center
Data Center Energy – Build Your Data Center in a Modular Way

4|7|14   |   2:13   |   (0) comments


Dr. Fang Liangzhou, VP Network Energy Product Line, shared his thoughts about the challenges for data centers during CeBIT 2014.
LRTV Huawei Video Resource Center
Agile Network Solution – An Overview of Huawei's Agile Network Solution

4|7|14   |   2:31   |   (0) comments


Ajay Gupta, Director of Product Marketing, Networking Product Line, gives an overview of the Agile Network Solutions during CeBIT 2014.
LRTV Huawei Video Resource Center
Huawei’s eLTE Voice Trunking, Video and Data Applied for Railways

4|7|14   |   1:38   |   (0) comments


Gottfried Winter is the Sales Director at Funkwerk, a German specialist in GSM-r terminals and a long-time partner of Huawei. At CeBIT 2014, Winter talks to Light Reading about this partnership and the integration of enhanced voice trunking, video and data functions.
LRTV Huawei Video Resource Center
LeaseWeb Speaks Highly of Huawei's Datacenter Products

4|7|14   |   1:37   |   (0) comments


Rene Olde Olthof, Operations Director LeaseWeb, talks about the next data center transformation during CeBIT 2014.
LRTV Documentaries
Comcast: Reshaping the Cable Network Architecture

4|3|14   |   07:11   |   (8) comments


Shamim Akhtar, Comcast's architect and senior director of network strategy, explains why the cable company is moving to a more distributed network architecture.
LRTV Custom TV
VMware CEO Pat Gelsinger at Mobile World Congress

4|1|14   |   3:41   |   (0) comments


VMware CEO Pat Gelsinger speaks to Heavy Reading about the value of virtualization spanning from the data center to service provider networks to mobile devices.
LRTV Huawei Video Resource Center
Analysts' Impressions of Huawei SoftCOM at ONS 2014

4|1|14   |   1:11   |   (0) comments


After visiting the Huawei booth at ONS, Lee Doyle of Doyle Research gives his appraisal of Huawei's SoftCOM solution.
Hot Topics
BlackBerry's Chen: We're Not Dumping Devices
Dan Jones, Mobile Editor, 4/10/2014
BlackBerry Invests in Healthcare IT Startup
Sarah Reedy, Senior Editor, 4/15/2014
Cisco, Juniper Treating Gear Against Potential Heartbleed
Dan O'Shea, Managing Editor, 4/11/2014
Cisco & VMware Are Apple & Google of SDN
Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/14/2014
T-Mobile Petitions Operators to Kill Overages
Sarah Reedy, Senior Editor, 4/14/2014
Like Us on Facebook
Twitter Feed