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Ericsson slashes 450 Swedish jobs

Swedish mobile telecom network giant Ericsson announced on Wednesday that 450 positions are to be cut in its sales and administration operations in Sweden.

Ericsson slashes 450 Swedish jobs

“Ericsson is informing its employees today on an adjustment of its activities which imply a reduction of about 400 jobs in Stockholm and around 50 jobs in Gothenburg within sales and administration,” the company said in a statement.

The company said the cuts were necessary following a new structure put in place in 2010 and according to which “certain competences within sales and administration moved closer to clients.”

Ericsson’s head of human ressources in Sweden said it was “a very sad decision” to cut staff in Stockholm and Gothenburg but said the company has started a process to recruit some 250 engineers for activities in Sweden.

At midday on Wednesday, the company’s stock was up just over 1 percent to 78.0 kronor ($12.3) on a Stockholm stock exchange up 0.52 percent.

Ericsson’s headquarters are in Stockholm and the company has some 17,848 employees in Sweden and 90,000 worldwide.

It is the market leader in mobile network equipment ahead of Finnish-German giant Nokia Siemens, French-based telecom equipment maker Alcatel-Lucent and China’s Huawei.

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SWEDEN AND UKRAINE

Ericsson suspends all Russia operations indefinitely

Swedish network equipment maker Ericsson said Monday that it was suspending all of its Russian operations over the war in Ukraine for the foreseeable future.

Ericsson suspends all Russia operations indefinitely

The telecom giant already announced in late February that it would stop all deliveries to Russia following Moscow’s February 24 invasion of Ukraine.

“In the light of recent events and of European Union sanctions, the company will now suspend its affected business with customers in Russia indefinitely,” Ericsson said in a statement.

The company added that it was “engaging with customers and partners regarding the indefinite suspension of the affected business.”

“The priority is to focus on the safety and well-being of Ericsson employees in Russia and they will be placed on paid leave,” it said.

READ ALSO: How has Sweden responded to Putin’s war in Ukraine so far?

Hundreds of Western firms ranging from Ikea to Coca-Cola, Goldman Sachs and McDonald’s have stopped operations in the country since the invasion, with French banking group Societe Generale announcing Monday it was selling its stake in Russia’s Rosbank.

Ericsson has around 600 employees in Russia, and is a “major supplier to the largest operator MTS and the fourth largest operator Tele2,” a company spokeswoman told AFP, adding that together with Ukraine, Russia accounts for less than two percent of revenue.

As a result, the equipment maker said it would record a provision for 900 million Swedish kronor ($95 million, 87 million euros) for the first quarter of 2022 for “impairment of assets and other exceptional costs,” though no staff redundancy costs were included.
Ericsson is due to publish its first quarter earnings on April 14.

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