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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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I note the west has no problems having their products manufactured in China for lowest rate possible. If your gullible enough to pay $1000 for a smart phone that costs apple $15 to make - more fool you.
You havent seen anything yet as India ( with the support of Australia ) have started training 500,000,000 Indians over the next 10 years. Thats 50,000,000 trained ultra cheap workers heading your way every year. In Australia the Indians already have every low paid job there is. Add to that the 20 odd million unemployed floating around Europe and you get the picture that slave labour will be back soon. Just the way big western corporations like it. If you have a young child forget them ever having a decent paid job ever.
Dont blame China. Blame the banks and the big corporations.
For years it has been the same thing... "We make less profit - ok, let's fire some 5.000 people. Oh, we have got only 4.000 left. Then let's employ 1.000, so we can reach the target..."
I guess Vestberg & Co. is paid too much to just come up with the same silly answers on poor quarter figures again and again. I bet his countdown is already running out. He had no fortune at all since he took over from Svanberg. Too bad...