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Ericsson slashes 450 Swedish jobs

Ericsson slashes 450 Swedish jobs

Published: 23 Mar 2011 12:19 GMT+01:00
Updated: 23 Mar 2011 12:19 GMT+01:00

"Ericsson is informing its employees today on an adjustment of its activities which imply a reduction of about 400 jobs in Stockholm and around 50 jobs in Gothenburg within sales and administration," the company said in a statement.

The company said the cuts were necessary following a new structure put in place in 2010 and according to which "certain competences within sales and administration moved closer to clients."

Ericsson's head of human ressources in Sweden said it was "a very sad decision" to cut staff in Stockholm and Gothenburg but said the company has started a process to recruit some 250 engineers for activities in Sweden.

At midday on Wednesday, the company's stock was up just over 1 percent to 78.0 kronor ($12.3) on a Stockholm stock exchange up 0.52 percent.

Ericsson's headquarters are in Stockholm and the company has some 17,848 employees in Sweden and 90,000 worldwide.

It is the market leader in mobile network equipment ahead of Finnish-German giant Nokia Siemens, French-based telecom equipment maker Alcatel-Lucent and China's Huawei.

AFP/The Local (news@thelocal.se)

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Your comments about this article

14:23 March 23, 2011 by gorgepir
Step in the right direction, get more engineers and less salespeople. If you don't have a product, how do you expect to sale?
16:35 March 23, 2011 by tthonline
These 250 engineers step in for the ones that were slashed in Norway, UK and Germany before. These are by far not "additional" engineers.

The management has only one answer to the threat from Chinese vendor Huawei - downsizing and cost cutting... They have lost the battle already as they will never ever be able to compete on price and cost with the Chinese. Since they have given up to beat them with service and features I guess they will be unable to turn around the trend. Lost in the low cost trap...
19:35 March 23, 2011 by miss79
so much swedish economy tigers huh?
09:37 March 24, 2011 by aaww
@tthonline

that is your misunderstanding, Huawei isn't all all low cost comparing to Ericsson or Nokia Siemens, if you count all the internal dividend they pay out to the employees, the realistic overhead is far more expensive than you can imaging.

if you look into the sales figure for q4 2010, Nokia Siemens is gaining grounds again, positioning no. 2 in the world mobile infrastructure equipment market, passing Huawei.
10:57 March 24, 2011 by adiz0r
Ericsson is recruiting at the moment in Hungary as well, quite heavily. I bet Hungarian engineers are way cheaper than Swedish ones.
12:32 March 24, 2011 by Nemesis
This article is very misleading.

The jobs are being lost in Sweden, yes.

However they are hiring people to do the exact same jobs outside Europe and not always at lower salaries, contrary to what is normally in the media.

Swedish companies are doing the the exact same thing as US companies. They are starting to offshore jobs.
12:39 March 24, 2011 by karex
If Nokia is gaining ground again, does this mean that they finally have a decent product or are they giving phones away for free?

Would love to go back to an Ericsson. Can't justify the cost though.
22:27 March 25, 2011 by EP
Hope these job cuts includes a good portion of the fika specialists ...
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