Following profit warning, Ericsson sees drops in Q3 sales
Mobile telecom equipment maker Ericsson said weaker global sales in the third quarter had made for a particularly rough 3 months.
On Friday, the company posted a net loss of SEK 233 million during its third quarter, a higher figure than what analysts believed was coming. Following the announcement, Ericsson stock fell nearly 4 percent at the opening bell on the Stockholm stock exchange.
"The negative industry trends from the first half of 2016 have further accelerated," acting CEO Jan Frykhammar wrote in a statement. "We will implement further short-term actions mainly to reduce cost of sales, in order to adapt our operations to weaker mobile broadband demand."
Earlier in the month, Ericsson issued a profit warning ahead of its third quarter report, saying that business results would be "significantly lower" than expected.
Ericsson is also laying off some 3,000 workers in an effort to reign in costs.
"Actions in the quarter included headcount reduction activities which were announced and initiated in Sweden, the US, Finland, Spain and the UK," Frykhammar wrote.