Ericsson to Cut 946 Jobs in Sweden

Dec. 8, 2009

Two months ago company reported 74% fall in net profit

Telecom giant Ericsson said on Dec. 8 it would cut 946 jobs in Sweden in an effort to downsize its production staff as it strives to improve efficiency.

The lay-offs come less than two months after the company reported worse-than-expected third quarter results, with a 74% fall in net profit blamed on falling sales and problems at its Sony Ericsson venture.

"We must reduce our production staff because the labor requirement for our products is diminishing as we increase efficiency," Ericsson chief executive Carl-Henric Svanberg said, adding "it's a hard day for us today."

The company would completely wind down its production at its Gaevle site, axing 856 jobs, and cut 90 jobs out of 1,037 at its Boraas plant.

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