x
Ultra-Broadband

Ericsson Snips 100 in Silicon Valley

Ericsson AB (Nasdaq: ERIC) laid off about 100 from its Silicon Valley campus on Thursday, a spokesman confirms.

The spokesman says the San Jose, Calif., site employs about 1,400 and has 150 open positions, so it's not a sign that the Silicon Valley operation is doomed or anything. The layoffs were a recalibration in response to changes in the business, he says, adding that some of the jobs are moving to locations closer to customers.

Sources tell Light Reading the bulk of the jobs cut came from the former Entrisphere and Redback acquisitions. The spokesman didn't know offhand whether that's true. (See Ericsson Spells Defense G-P-O-N and IPTV Drives Ericsson to Redback.)

Ericsson makes a big deal out of having a Silicon Valley outpost. The facility is being used as a development center for emerging technologies and a demo showcase for customers. It's also meant to be Ericsson's Silicon Valley connection, putting the European company in closer quarters with mobile-application and Web 2.0 startups. (See Ericsson in the Valley.)

— Craig Matsumoto, West Coast Editor, Light Reading

Page 1 / 2   >   >>
schlettie 12/5/2012 | 5:07:20 PM
re: Ericsson Snips 100 in Silicon Valley

Please, get real.  In the last decade Ericsson has shut down the following US acquisition sites: Santa Barbara, Rockville, Raleigh, Warrendale, RTP, Boulder.  Did I forget San Diego?

dellman 12/5/2012 | 5:07:20 PM
re: Ericsson Snips 100 in Silicon Valley

Ericsson generally treats employess well. Not sure what the redback team did ( or did not do) to deserve this treatment

Norcal Router Guy 12/5/2012 | 5:07:20 PM
re: Ericsson Snips 100 in Silicon Valley

I gotta say my colleagues were treated poorly by Ericsson.       


More than 150 showed up for work.  Their badges did not work.                         Many could not collect their stuff or say goodbye to colleagues.  Some had 10+ years at Redback.


Entire teams got eliminated: PM, sales, engineering, certain GA functions.  We're told most of the GPON or broadband access stuff is moving to China development centers.   This is where products are capped or go to die.  


On the Redback side, similar functions got reduced or eliminated.  Sales teams, SE teams, and sales operations were whacked pretty hard.  Not unexpected.  These teams have been overlay groups for 2+ years.  In engineering, network OS teams in Canada were almost zero'd out.  Many top folks in router PM have already left the company.


Finally, there are not 150 vacancies in Ericsson Silicon Valley.  Many of these positions are in Ericsson North America (e.g. Plano Texas).   And for the last six months, new hiring in SV has been frozen.   

opticalwatcher 12/5/2012 | 5:07:19 PM
re: Ericsson Snips 100 in Silicon Valley

 Silicon Valley is going to have to figure out how to be competitive again.  The differentiation in talent is nearly gone compared to 10 years ago, but the salary structure (really, cost of living) is completely out-of-whack.


Yes, all those old, almost forgotten companies that are headquartered there: AMD, Intel, Cisco, Yahoo, Google, Facebook, HP,  a few thousands more....um, wait a minute. 


Well, if it isn't the competitiveness, maybe it's the cost of living.


Housing prices in Boston, $295300



http://www.zillow.com/local-in...


Housing prices in San Jose, $362300



http://www.zillow.com/local-in...


 


Well, not that bad , especially considering that heating and cooling costs will be much lower.


Stevery 12/5/2012 | 5:07:19 PM
re: Ericsson Snips 100 in Silicon Valley

> Finally, there are not 150 vacancies in Ericsson Silicon Valley.


As an aside:  Silicon Valley is going to have to figure out how to be competitive again.  The differentiation in talent is nearly gone compared to 10 years ago, but the salary structure (really, cost of living) is completely out-of-whack.

bwolmarans2 12/5/2012 | 5:07:18 PM
re: Ericsson Snips 100 in Silicon Valley

"The differentiation in talent is nearly gone compared to 10 years ago"


@Stevery - very well said, even if it is an aside.


And I don't think we're simply talking about offshoring here.


I would like to see Lightreading or NetworkWorld explore that point further, prehaps in a full article on the slender shrinking skill margin that Silicon Valley holds over other development centers.  Texas being one of them.

Stevery 12/5/2012 | 5:07:18 PM
re: Ericsson Snips 100 in Silicon Valley

> headquartered there


HQ != engineering.  As an example: Notice the number of large facilities that Intel has built in the past decade, and count how many of those are in SV.


> [SJC vs BOS]


You can choose two expensive areas to compare, or you can choose areas which Intel is migrating to.  If you do the latter, you will see why Intel employment growth is outside the valley.


So am I guessing correctly that you are in SV working for an SV company?  It's very hard to see the writing on the wall, just those getting outsourced over the last decade were touting how their particular jobs couldn't be sent overseas.









paolo.franzoi 12/5/2012 | 5:07:18 PM
re: Ericsson Snips 100 in Silicon Valley

 


Not sure if I 100% agree with the assessment here on talent.  I think the newer talent has shifted.  It is pretty clear that Hardware and Comm systems are complete commodities.  So the talent has moved to other things - like a lot of software, biotech and "green energy".


seven


 

paolo.franzoi 12/5/2012 | 5:07:18 PM
re: Ericsson Snips 100 in Silicon Valley

I was always surprised that E got back into PON after Raynet.  The Alcatel Team has done a really great job at stalling the entry of E into AT&T for access.  I always thought that was Krish, but I have to say they still have the skill in executing real well there. 


Without AT&T there is simply no scale for E in GPON, so it should go off to China to go into maintenance.  I wonder what AT&T will do without its second vendor as a stalking horse.  If I was still working at Tellabs, I might be giving the folks at E a call.


seven


 

paolo.franzoi 12/5/2012 | 5:07:17 PM
re: Ericsson Snips 100 in Silicon Valley

 


And I think it is more than that.



E grew a lot in SV, both from Entresphere and Redback.  Pretty sure that Entresphere has gone nowhere.  I am not even sure that E has any announced GPON wins of any magnitude and the DLC functionality went nowhere.  So, cutting back on that makes sense in any case.


As for Redback, they have surely been treated like Golden Children inside E.  I suspect some rationalization was in order anyway.


 


Jim

Page 1 / 2   >   >>
HOME
Sign In
SEARCH
CLOSE
MORE
CLOSE