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© ericsson Electronics Production | August 17, 2017

Ericsson to let 25'000 employees go?

Mobile telecom company Ericsson may lay off around 25'000 employees outside Sweden, media reports suggest.
Speculations see Ericsson planning a substantial cost savings program with up to 25'000 layoffs.

The Swedish telecom manufacturer released the following statement regarding those media reports:

Ericsson has previously communicated that a key component in the company's focused business strategy is to reduce costs and increase efficiency. In connection with the Q2 report 2017, Ericsson communicated that the company, in light of the current market outlook, will accelerate the planned actions to ensure that the target of doubling the 2016 operating margin beyond 2018 can be met. Actions will be taken primarily in service delivery and common costs, but do not include R&D. The plan is to implement cost savings with an annual run rate effect of at least SEK 10 b. by mid-2018, of which approximately half will be related to common costs.

Ericsson has not communicated which specific units or countries that could be affected. It is too early to talk about specific measures or exclude any country. As Ericsson executes on these plans to save costs, the company will communicate this, and to what extent employees could be affected.

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September 15 2017 9:25 AM V8.7.1-1