Ericsson to Cut 1,550 Jobs Next Year

The telecom industry has not invested in next-generation networks on the massive scale the equipment vendors had expected. Nokia (NYSE: NOK  ) and Siemens (NYSE: SI  ) are trying to get out of their infrastructure-focused joint venture. Alcatel-Lucent (NYSE: ALU  ) is cutting costs with a heavy hand. Headcounts are dropping across the industry.

Today, Swedish sector giant Ericsson (Nasdaq: ERIC  ) joined the cost-cutting fray.

Ericsson announced that 1,550 positions will be eliminated across its Swedish operating base. The cuts will run deepest at Ericsson's largest job sites in Gothenburg, Stockholm, and Linkoping, but very few locations were spared the scythe. In all, 8.7% of Ericsson's Swedish employees will be sent back on the job market thanks to this move.

The cuts will fall in the first half of 2013, pending negotiations with local unions. Ericsson expects to reduce its 2014 operating costs by $33 million as a result of this move. That's less than 1% of Ericsson's current annual operating costs, and the company employs 109,000 people worldwide.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2100017, ~/Articles/ArticleHandler.aspx, 4/23/2014 8:22:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement