Ericsson to cut 2,200 jobs in Sweden in bid to save US$1bn

11 Mar 2015

Swedish communications technology giant Ericsson is to cut 2,200 jobs in its home country – mainly in R&D and supply – in a bid to achieve cost savings of more than US$1bn.

The job cuts are part of an overall set of efficiency measures that will run until 2017 globally.

Ericsson said it plans to excel in core areas such as radio, core and transmission and telecoms services by funding growth in areas such as IP networks, cloud, TV and media.

As part of this, the company is establishing three global ICT centres with a common test and development strategy.

But the strategy also involves headcount cuts and savings in costs.

“Today, Ericsson is announcing that 2,200 positions in Sweden, mainly in R&D and supply, are subject to notice,” the company stated.

“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 programme targets savings of approximately SEK9bn (US$1.05bn) 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,” Ericsson said.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years