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Eurobites: Ericsson Confirms Swedish Job Cuts

Paul Rainford
10/4/2016
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Also in today's EMEA regional roundup: Microsoft rolls out its European cloud; Interoute provides airline support; Apple Pay reaches Russia.

  • Confirming reports that appeared in the Swedish press last month, Ericsson AB (Nasdaq: ERIC) has announced that it will axe 3,000 jobs in Sweden as part of an ongoing cost-cutting program. Approximately 1,000 of the redundancies will be in production, around 800 in R&D and the remainder in other areas. Operations in Borås and Kumla will be particularly affected, with some production sites closing. Seemingly at odds with these cuts, however, the vendor has also said it intends to recruit around 1,000 R&D staffers in Sweden over the coming three years, to "support the company's competence buildup in new technology and customer domains." Ericsson currently has around 16,000 employees in Sweden. The restructuring follows a series of disappointing financial results, and the company is still looking for a new CEO following the ousting of Hans Vestberg in July. (See Eurobites: Ericsson to Close Remaining Swedish Plants – Report, Ericsson Ejects CEO Vestberg, Ericsson 'Doubles' Savings Goal as Sales Slump and Trouble at Ericsson: Can the CEO Survive July?)

  • Microsoft Corp. (Nasdaq: MSFT) has revealed that it intends to deliver the Microsoft Cloud from data centers in France next year as it continues its cloud investment in Europe. Speaking to the great and the good (and some journalists) in Dublin on Monday, CEO Satya Nadella said that Microsoft has already invested more than $3 billion across Europe to date. (See Microsoft Increases European Cloud Investment to $3B.)

  • Still on matters cloudy, the International Air Transport Association (IATA) has chosen Interoute Communications Ltd. as its "preferred" ICT partner. IATA will use the Interoute Virtual Data Centre to power its applications and systems providing settlement services for airlines worldwide.

  • Nordic operator Telia has launched the first in a series of smart-city pilots in Norway. It's teaming up with Oslo City Bikes on a system that gives Oslo residents information on the capital's air quality via sensors mounted on cycle racks, so that they can in theory avoid heavily polluted spots as they cycle through the city.

  • Russia will today become the 10th country to open its doors to the Apple Pay system, reports Reuters. Initially the system will be run in conjunction with Sberbank and Mastercard.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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    TV Monitor
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    TV Monitor,
    User Rank: Light Sabre
    10/5/2016 | 11:20:26 AM
    Ericsson's pain not over
    The worst for Ericsson is yet to come once the transition to 5G begins, since Ericsson is shut out of East Asian markets deploying 5G first, and Europe will be the last to deploy 5G.
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