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Ericsson cuts 5,000

January 21, 2009

The world's largest telecommunications equipment manufacturer has announced the loss of another 5,000 jobs as part of a SKr10bn (E920m) cost reduction programme, despite reporting better than expected results for the fourth quarter of the year.

The company had 78,750 employees worldwide as of the end of December. Sales rose 23 per cent for the quarter at SKr67bn compared with market expectations of SKr57bn. Earnings per share were SKr1.21, against forecasts of SKr1.09.

The company said it will sack consultants and other temporary staff, consolidate R&D sites and make layoffs. This will result in a reduction of the number of employees by around 5,000, of which about 1,000 are in Sweden. It cut 4,000 jobs last year.

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