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Ericsson to slash 1,500 jobs in Sweden

Ericsson to slash 1,500 jobs in Sweden

Swedish telecom giant Ericsson announced on Wednesday that it would be cutting 1,550 jobs nationwide over a range of sectors, in an effort to reduce costs.

Published: 07 Nov 2012 10:27 CET

"It is naturally a difficult message for our employees in Sweden," said Tomas Qvist, head of Ericsson's Human Resources in Sweden, in a statement.

Ericsson informed Swedish employees that the affected job areas included sales, general and administration, research and development, supply and service delivery.

All sites in Sweden will be hit by the cutbacks, except for Falun, Hudiksvall, Kalmar and Katrineholm.

"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,” Qvist added.

"Over the past couple of years we have been continuously driving these global efficiency measures across regions and units. And, sometimes redundancies are unfortunately inevitable," says Qvist.

The most cutbacks will be made in Stockholm, where approximately 1,000 people will be hit, with the Gothenburg area set to lose around 200 employees.

Some 18,000 people are currently employed by the telecom giant in Sweden, with the company boasting sites in 15 areas.

Negotiations have commenced with union representatives, and the employees who are expected to lose their jobs will be informed in March 2013.

Ericsson operates in 180 countries and employs over 100,000 people worldwide. The company’s headquarters are in Stockholm, and in 2011, Ericsson reported net sales of 226.9 billion kronor ($35 billion).

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