Swedish mobile telecom gear maker Ericson to lay off 25,000 employees outside of Sweden

This is part of its strategic cost cutting move to at least $1.2 billion by mid-2018.

Svenska Dagbladet, a Swedish daily has reported citing anonymous sources familiar with the matter at hand, Ericsson is likely to lay off 25,000 employees outside Sweden.

The move is part of its strategic cost cutting program.

In July, the mobile telecom gear maker had stated it would accelerate measures to double its 2016 operating margin of 6% through an annual cost reduction of at least $1.2 billion (10 billion crowns) mid-2018.

The company has stated job cuts will primarily be in the service delivery sector while those pertaining to R&D would be mostly unaffected.

Ericsson is facing significant competition from Finland’s Nokia and China’s Huawei. Added to that pressure is a weak market which is compounded by falling spending by telecoms operators with the next-generation 5G technology still years away.

Svenska Dagbladet has reported that it was not clear whether the planned layoffs included employees within its media operations, which incidentally are up for a strategic review. Analysts see this department as a likely sales target.

“Ericsson has not communicated which specific units or countries could be affected. It is too early to talk about specific measures or exclude any country,” said Ericsson in a statement on its website.

The company has nearly 109,000 employees.


Categories: Uncategorized

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