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Leaked documents say Ericsson could close Swedish factories

Published torsdag 22 september 2016 kl 09.38
Patricia Hedelius: They want to close down a historic era
(1:49 min)
Ericsson could be ending all manufacturing in Sweden. Photo: Maja Suslin/TT
Ericsson could be ending all manufacturing in Sweden. Photo: Maja Suslin/TT

The telecoms company Ericsson has plans to end its manufacturing in Sweden, according to internal documents seen by a major newspaper.

Ericsson has outlined a savings plan for its Network Products unit which would lead to around 3000 people losing their jobs, according to a confidential report leaked to the newspaper Svenska Dagbladet.

"They want to close down a historic era," Svenska Dagbladet's reporter Patricia Hedelius told Swedish Radio News.

The savings plan would see the company’s two remaining Swedish manufacturing facilities in Borås and Kumla being closed down for good, putting an end to Ericsson’s 140 years of manufacturing in the country.

According to the report seen by Svenska Dagbladet, the Network Products division needs to save twice as much as last year, when nearly 1500 jobs were cut. But the Swedish Association of Graduate Engineers trade union told Swedish Radio News the job cuts had not been discussed in negotiations with the company.

“It must be that this is coming from some specific business unit where someone wrote something down. But whether it is an old plan or if it is wishful thinking is hard to tell,” said Per Nordlander, union representative at Ericsson.

Ericsson has not confirmed the plans for closing down its manufacturing units in Sweden. In a written comment to the news agency TT the company wrote that the its current cost-saving measures lead to staff reductions around the world.

"We have extensive business activities in Sweden and these are no exception. As always when it comes to staff cuts we handle this country by country and we always inform our employees and trade union representatives first," Ericsson wrote.


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