Telecoms infrastructure company Ericsson has announced a big round of layoffs in a cost cutting drive after weathering a tough Q3, amid the global downturn. Reuters is reporting nearly nine percent of the company’s workforce in Sweden — 1,550 jobs out of a total of 17,768 — are to go.
In Q3, Ericsson’s core profit fell 42 percent — attributed to slower orders and a shift in business mix to less profitable contracts, according to the news agency. At the time, CEO Hans Vestberg said Ericsson “will continue to proactively identify and execute additional efficiency gains and cost reductions” — a flag that job cuts were likely looming.
Commenting on the job cuts, Tomas Qvist, head of human resources at Ericsson, said in a statement: “We must ensure that we can continue to execute on our strategy to maintain our market leadership, invest in R&D and meet our customers’ needs. To secure this we need to focus on reducing cost, driving commercial excellence and operational effectiveness. “