Ericsson Plans MASSIVE Job Cuts…25,000 to LOSE JOBS?

In an effort to cut costs and boost profitability, Ericsson is planning to reduce its workforce by up to 25,000 staff, according to sources cited by Swedish newspaper Svenska Dagbladet.

Cuts of that magnitude would affect about 23% of the vendor’s total headcount: Ericsson AB (Nasdaq: ERIC) ended June with 109,127 staff, down by about 7,000 from a year earlier.

The reported headcount reduction is linked to the company’s plans to reduce its annual operating costs by 10 billion Swedish kronor (US$1.23 billion) by mid-2018, a move outlined by CEO Börje Ekholm when Ericsson reported disappointing second-quarter results last month that reflected intense competition and shifting capex trends. (See Ericsson Shares Slump on Gloomy Q2 Update.)

According to the sources cited by Svenska Dagbladet, the company’s R&D operations in Sweden would not be affected, but the company’s managed services unit, which employs about 30,000 staff, and multiple in-country operations across Europe could be hit hard.

P/C PIXABAY