Ericsson early starts reduction of staff in Sweden

Manufacturer of telecommunication equipment Ericsson reported early reduction of staff in Sweden. Ahead of the previously scheduled plan has led to an increase in restructuring costs this year.

Plans cuts became known this autumn. According to them, Ericsson had to close the last factory in Sweden and to lay off 3,000 employees. The need to reduce costs was the result of increasing competition with China’s Huawei and Finland’s Nokia.

According to preliminary estimates, restructuring costs this year will amount to 600-700 million dollars, which is 10-20% higher than previously planned. More exact sum will be announced in January.

Founded in 1876 as a manufacturer of Telegraph equipment, Ericsson is among the largest Swedish companies. Its staff in over 180 countries has a population of 115 000 people.

Source: Reuters

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