Miércoles, 15 Agosto, 2018

Ericsson could downsize foreign workforce by 25000

Pic Reuters Pic ReutersSTOCKHOLM
Malita Javier | 19 Agosto, 2017, 06:25

However, it declined to confirm a report in Svenska Dagbladet, the Swedish daily, that it was seeking to reduce its workforce outside Sweden by as many as 25,000, representing almost a quarter of its 110,000 employees. The Mobile Telecoms unit has already axed around 7,000 jobs over the last 12 months and is now looking to slim down its global operation even further. Reuters cited a report from the Swedish daily Svenska Dagbladet, which pointed to unidentified company sources.

"Ericsson has not communicated which specific units or countries could be affected".

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If the number is correct, Ericsson's workforce would fall below 100,000 with it now standing at 109,000.

As response, the troubled company's new CEO Börje Ekholm announced costs cuts of 10 billion SEK ($1,25 bn) per year. "It is too early to talk about specific measures or exclude any country", Ericsson said in a statement on its website. In July, the company said that it would "accelerate measures" to meet a target of doubling its 2016 underlying operating margin of 6 per cent. There are said to be plans to centralise several European markets and downsize their workforces.

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Most of the cost saving would be made primarily in service delivery and common costs, while research and development would be spared.

Svenska Dagbladet said it was not clear whether the planned layoffs included employees within its media operations, which are up for strategic review and seen by analysts as likely to be sold by the group.

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