Ericsson cuts

Swedish state ‘prepared to act’ on Ericsson cuts: minister

Swedish state 'prepared to act' on Ericsson cuts: minister
Enterprise minister Mikael Damberg visiting a town hit by the cuts on Wednesday. Photo: Pavel Koubek/TT
Sweden's enterprise and innovation minister Mikael Damberg is visiting the town of Kumla on Wednesday after telecoms giant Ericsson announced it would close down most of its operations in the area as part of a major cost-cutting programme.

On Tuesday, Ericsson confirmed it would let go 3000 of its 16,000 employees in Sweden, with its manufacturing branch in the country being scaled back significantly. Along with Borås in western Sweden, central Swedish town Kumla is expected to be hit the worst.

Enterprise minister Damberg said he has no new information on what the Swedish government may do to help the area.

“The main purpose is to show support for the employees,” he said of his visit, where he was to meet with Ericsson employees, union representatives, local business heads and local politicians.

“It is important to show face but also to show support for the employees. Above all, I’ll continue to say what we have said all along: we expect Ericsson to take responsibility in this situation, but the state is prepared to act,” he told news agency TT.

READ ALSO: 'It's tough. Ericsson has been like a second home'

The Swedish government has appointed special coordinators who will be responsible for any interventions.

“That’s to do with both training and transition activities, making sure that the employment agency has the necessary resources, and that we all join forces. To make sure the educational system is prepared to step in with additional training for the employees if they need it in order to move forward to their next job,” he added.