Ericsson to cut staff in Sweden
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Ericsson announces plan to reduce staff in Sweden by 8.7% in ‘global efficiency’ drive
Ericsson has announced that it will cut 1,550 jobs from its operations in Sweden, about 8.7% of the 17,768 that are employed in the company’s home country.
Ericsson has 109,214 employees worldwide, implying that the cut is 1.4% of the global total. Ericsson has not said anything about staff levels in the rest of the world.
The move comes the day after Ericsson held its investor day, when it said that the annual growth rate in equipment until 2015 will be 5-7%, compared with the growth rate for support solutions that it expects to be 9-11% a year.
The cuts will include sales, general and administration, research and development, supply and service delivery, said Tomas Qvist, head of Ericsson’s human resources in Sweden. “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.”
Most of the reductions are in the company’s networks unit. Around 1,000 jobs will be lost at the worst affected site, Stockholm. Qvist said: “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.”