Electronics Production |
Ericsson cuts 5 000 jobs worldwide
Despite an unexpectedly strong profit, Ericsson continues their restructuring and savings program and is to cut off about 5 000 jobs worldwide. Included are 1 000 in Sweden alone.
The restructuring costs in 2009 are estimated at €550 - 650 million. From the second half of 2010, it is expected that these measures give annual savings of €900 million.
In addition to the layoffs, other cost savings will mean a reduction in the number of consultants and other temporary staff and a consolidation of the company's research and development centres.
The savings that Ericsson announced in February 2008 resulted in an annual saving of around €600 million, compared to the €360 million that Ericsson was aiming for. Restructuring costs of these measures amounted to €615 million in 2008.
