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Ericsson announces 3,000 jobs to go in Sweden

Published tisdag 4 oktober 2016 kl 09.01
Ericsson in Borås.Photo:Niclas Odengård/SR.
Ericsson in Borås. Photo:Niclas Odengård/SR. Credit: Niclas Odengård/SR.

Mobile telecoms equipment maker Ericsson has announced jobs cuts of 3,000 in Sweden with significant reductions in the last of its manufacturing sites in the country, at Borås and Kumla.

The company said on Tuesday that it "intends to make significant reductions of operations in Borås and Kumla." The job losses will also impact operations on sites in Gothenburg, Karlskrona, Linköping and Stockholm.

Ericsson today has approximately 16,000 employees in Sweden. One thousand jobs will go in production, approximately 800 in R&D and 1,200 in other operations.

The proposed redundancies are intended to be met through a combination of voluntary and forced redundancies as well as other alternatives such as outsourcing.

Ericsson also said that it will make general cost reductions and take out external costs, primarily by reducing the number of consultants in Sweden by 900, but also through general reductions in operating expenses.

In a statement, Jan Frykhammar, President and CEO, Ericsson said:

"Ericsson is going through a large transformation. We continue to have a strong focus on R&D, and since many years, most Ericsson employees work in software development and services, rather than hardware production. The measures are necessary to secure Ericsson's long term competitiveness as well as technology and services leadership."

Ericsson, which has about 120,000 employees worldwide, has seen demand stagnate in developed markets where the most advanced networks have mostly already been built.

It said in July that it needed to make annual savings of some SEK 10 billion from the second half of 2017 compared to 2014.

Ulf Ewaldsson, Chief Strategy and Chief Technology Officer, said in a statement, Tuesday: "We have a clear goal that our R&D in Sweden should be world leading, not least in next generation systems. In the short term we have to reduce the number of positions in R&D, primarily within administrative roles. At the same time our intention is to bring in new competence in new technologies. Therefore, we intend to recruit approximately 1,000 engineers in Sweden, primarily from universities, over the coming three years."

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