© ericsson Electronics Production | September 07, 2017

Sources: 14'000 may have to leave Ericsson

New information regarding Ericsson’s savings programs that CEO Börje Ekholm previously flagged for has surfaced. Arun Bansal, Ericsson's head of Europe and Latin America, is working hard to reduce costs within the business area.
Unnamed sources have reached out to Swedish newspaper SvD, saying that about 14’000 employees within the business area may be forced to leave the company. One of the sources – described as having insights in the matter – says that it still isn’t clear how everything will go forward, but that we will basically see closures in several countries where sales have disappeared.

Sales for the Swedish giant fell by 8 percent YoY in the last quarter, and according to Börje Ekholm this was mainly driven by lower sales in market areas Europe & Latin America and Middle East & Africa.

The business area in question is the company's largest in number of employees with its approximately 53,000 people workforce. And Arun Bansal became a household name just last year when his proposal to cut in the Networks business area dropped. A proposal that would pretty much mean that Ericsson would leave Sweden.

However, the plans faced heavy criticism back home from the unions. Which also saved the Swedish R&D-operations, SvD writes.


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