Ericsson Slashes 3,000 Jobs in Sweden
October 04 2016 - 5:20AM
Dow Jones News
STOCKHOLM—Sweden's Ericsson AB on Tuesday said it plans to lay
off 3,000 employees in its home country in an effort to cut costs
amid intensifying competition and a sluggish mobile-equipment
market.
Ericsson said it intends to let go around 1,000 positions in
production, 800 in research and development and 1,200 in other
operations such as sales and administration, totaling a reduction
of nearly one-fifth of its 16,000 workforce in Sweden.
Ericsson has been battling slowing demand for its cellphone
towers and switches as it faces stiff competition from its Nordic
rival Nokia Corp. and China's Huawei Technologies Co., while
spending by mobile service providers on last-generation mobile
networks, known as 4G, has dried up.
Instead, Ericsson is betting on the development of
fifth-generation networks, or 5G, and software-based services such
as the Internet of Things and cloud computing.
"Ericsson is going through a large transformation," said Jan
Frykhammar, Ericsson's acting chief executive. "The measures are
necessary to secure Ericsson's long-term competitiveness as well as
technology and services leadership."
Write to Matthias Verbergt at Matthias.Verbergt@wsj.com
(END) Dow Jones Newswires
October 04, 2016 05:05 ET (09:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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