Ericsson to cut 2,200 jobs as part of efficiency programme

Ericsson to cut 2,200 Swedish jobs as part of efficiency programme

11 MAR 2015

Ericsson, the world’s largest mobile network vendor, is making 2,200 redundancies in Sweden, mainly in R&D and supply, as part of a wider two-year cost-cutting campaign.

Previously announced at the company’s Capital Markets Day back in November, the company gave out more details about the programme, including where the axe is going to fall.

And the company told Mobile World Live there will be further redundancies outside Sweden as part of the same two-year programme, in addition to today’s announcement.

The company also confirmed the previously announced aim of saving SEK9 billion ($1.2 billion) over the same period.

The aim is to reduce cost, both by cutting headcount and hitting external costs through a programme that will run through 2017.

Ericsson hopes to deploy the savings on growth areas, such as IP, cloud, TV & media and OSS/BSS.

This year’s efficiency drive will target R&D, service delivery and the supply chain but the company is also casting an eye over sales, general and administration, as well as external costs such as outside consultants and consolidating its IT portfolio.

Tough as it is on those hit by redundancy, it should be borne in mind that Ericsson is a behemoth with 115,000 employees globally.

As part of its programme, the company is establishing three global ICT centres with a common test and development strategy and methodology for R&D.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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