Implementation of cost and efficiency program in Sweden
June 24 2015 - 5:00AM
-
Implementation of the cost and efficiency
program in Sweden announced March 11
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Reduction of approximately 2,100 positions in
Sweden
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As previously communicated, this will result in
additional restructuring charges which, combined with the normal
restructuring, will amount to approximately SEK 2.5 b. in Q2,
2015
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Savings related to this activity in Sweden will
start to impact results towards the end of 2015
The global cost and efficiency program, announced
at Ericsson's (NASDAQ:ERIC) Capital Markets Day on November 13,
2014, is progressing according to plan. The ambition is to achieve
savings of approximately SEK 9 b., with full effect during
2017.
As part of the global program, on March 11, 2015,
Ericsson announced that 2,200 positions in Sweden, mainly in
R&D and Supply, were subject to notice. As the next step of
this activity, individuals on different locations in Sweden have
been given notice during June. In total, there will be a reduction
of approximately 2,100 positions, with some 1,700 employees leaving
the company.
For Q2 2015 restructuring costs of approximately
SEK 2.5 b. are expected. These estimated costs include normal
ongoing restructuring as well as charges related to the cost and
efficiency program, this quarter primarily driven by changes in
Sweden. Savings related to this specific activity will start to
impact results towards the end of 2015.
Progress updates on the program will be included
in Ericsson's earnings reports.
NOTES TO EDITORS
Next step in global Cost and Efficiency program,
March 11
Ericsson Capital Markets Day 2014, November 13
Download high-resolution photos and broadcast-quality video at
www.ericsson.com/press
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Implementation of cost and
efficiency program in Sweden
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Source: Ericsson via Globenewswire
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