& cplSiteName &

Ericsson Sheds 1,550 Staff in Sweden

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

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 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        ADD A COMMENT
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 2, 2017, 8 Northumberland Avenue – London
November 10, 2017, The Westin Times Square, New York, NY
November 16, 2017, ExCel Centre, London
November 30, 2017, The Westin Times Square
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Muni Policies Stymie Edge Computing
Carol Wilson, Editor-at-large, 10/17/2017
Is US Lurching Back to Monopoly Status?
Carol Wilson, Editor-at-large, 10/16/2017
'Brutal' Automation & the Looming Workforce Cull
Iain Morris, News Editor, 10/18/2017
Pai's FCC Raises Alarms at Competitive Carriers
Carol Wilson, Editor-at-large, 10/16/2017
Worried About Bandwidth for 4K? Here Comes 8K!
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 10/17/2017
Animals with Phones
Selfie Game Strong Click Here
Latest Comment
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives