Sweden's Ericsson to Slash 2,200 Jobs Cristina Arias/Getty Images

Sweden's Ericsson to Slash 2,200 Jobs

In January, Ericsson said its net profit plunged 35% in the fourth quarter of 2014, dragged down by falling demand in its key market North America.

STOCKHOLM - Swedish telecoms group Ericsson (IW 1000/124) plans to cut some 2,200 jobs as part of a major cost-cutting and restructuring exercise, the company said Wednesday.

Its "cost and efficiency" program, first announced in November, "includes both headcount reductions as well as savings in external costs across the company's operations globally," a statement said.

"Today Ericsson is announcing that 2,200 positions in Sweden, mainly in R&D and supply, are subject to notice," the telecoms equipment maker said.

Ericsson employs nearly 120,000 people worldwide.

CEO Hans Vestberg told the TT news agency "there are two reasons (for the cuts), on the one hand a structural change in production and research and development, on the other, improvements in efficiency."

The group intends to make savings of some $1.05 billion through 2017, Wednesday's statement said.

In January, Ericsson said its net profit plunged 35% in the fourth quarter of 2014, dragged down by falling demand in its key market North America.

Profits slumped 35% to 447 million euros in the period, while net profit for the full year was down 4.0% to 11.57 billion kronor.

Late last year the group said it would refocus its business on its core network activities. Notably, it stopped developing modems, mainly for cell phones.

Wednesday's announcement deals a new blow to Sweden's technology sector two days after Sony Mobile announced 1,000 job cuts in the south of the country at a site once jointly operated with Ericsson.

Copyright Agence France-Presse, 2015

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