Next step in global Cost and Efficiency program
March 11 2015 - 5:15AM
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Cost and efficiency program announced in
November, 2014, now moving into next phase with activities
worldwide
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2015 activities will mainly target structural
improvements in R&D, Service Delivery and Supply globally
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Includes both headcount reductions as well as
savings in external costs across operations globally
Ericsson continues to execute on strategy to excel
in core areas: Radio, Core and Transmission and Telecom Services,
to fund growth in the targeted areas: IP networks, Cloud, TV &
Media, OSS & BSS and Industry & Society. The pace of change
is increasing in the industry, accelerated further by industries
converging. The pace of change is also accelerating in Ericsson
(NASDAQ:ERIC) as the company transforms to ensure leadership in the
ICT industry.
As announced at Ericsson's Capital Markets Day on
November 13, 2014, accelerated efficiency measures will start in
2015 and run through 2017 globally. In 2015, the cost and
efficiency program activities will mainly target structural
improvements in R&D, Service Delivery and Supply globally to
secure highly efficient, effective and industry-leading operations
to support growth. The establishment of the three global ICT
centers with a common test and development strategy and methodology
for R&D is part of the long-term structural improvements and
efficiencies.
The program includes both headcount reductions as
well as savings in external costs across the company's operations
globally. Today, Ericsson is announcing that 2,200 positions in
Sweden, mainly in R&D and Supply, are subject to notice.
There will also be efficiencies in sales, general
and administration, as well as reductions in external cost, for
example related to the number of consultants and consolidation of
IT portfolio.
The program targets savings of approximately SEK 9
b. with full effect during 2017. This is a long-term initiative
with an ambition to reduce operating expenses and cost of sales
across all Ericsson's operations, units and functions already in
2015 in order to fund growth in targeted growth areas. As
previously communicated, annual restructuring normally generates
charges of approximately SEK 2 b. In addition, the cost and
efficiency program will generate approximately SEK 3-4 b. in
restructuring charges in 2015-2017.
Progress updates on the program will be included
in Ericsson's earnings reports.
NOTES TO EDITORS
Download high-resolution photos and
broadcast-quality video at www.ericsson.com/press
Ericsson is the driving force
behind the Networked Society - a world leader in communications
technology and services. Our long-term relationships with every
major telecom operator in the world allow people, business and
society to fulfill their potential and create a more sustainable
future.
Our services, software and
infrastructure - especially in mobility, broadband and the
cloud - are enabling the telecom industry and
other sectors to do better business, increase efficiency, improve
the user experience and capture new opportunities.
With approximately 115,000
professionals and customers in 180 countries, we combine global scale with technology and services
leadership. We support networks that connect more than 2.5 billion
subscribers. Forty percent of the world's mobile traffic is carried
over Ericsson networks. And our investments in research and
development ensure that our solutions - and our customers - stay in
front.
Founded in 1876, Ericsson has its
headquarters in Stockholm, Sweden. Net sales in 2014 were SEK 228.0
billion (USD 33.1 billion). Ericsson is listed on NASDAQ OMX stock
exchange in Stockholm and the NASDAQ in New York.
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FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations@ericsson.com
Next step in global Cost and
Efficiency program
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ericsson via Globenewswire
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