The company is apparently planning to cut 3,000 jobs as part of the cost cutting and manufacturing unit shut-down plan.
Ericsson, the Swedish telecom equipment and services company, plans to close the last of its Swedish manufacturing sites as part of planned savings. The company is apparently preparing to cut 3,000 jobs in keeping with the shut-down plan of its manufacturing unit.
Having already announced a nine billion Swedish crown ($1.1 billion) cost-cutting programme in 2014 earlier, in July again Ericsson said that it would step up cost cuts owing to deteriorating market conditions.
It is reported that the manufacturing facilities in the cities of Boras and Kumla will be closed. This decision will mean the end of a legacy of 140 years of production in Sweden, for the company that began as a producer of telegraph and telephony equipment.
The planned closures are expected to save about three billion crowns. One union representative, however, shared with the media that negotiations had not resulted in a final decision. Ericsson on the other hand, recently told media that it would reduce staff worldwide.
Reportedly, the affected jobs are in the network products division, the company’s biggest business area.
Ericsson, which has about 1,20,000 employees worldwide including 17,000 in Sweden, has been contending with stagnant demand in developed markets, where the most advanced networks have largely been built already.