© alexey utemov dreamstime.com Electronics Production | May 12, 2015
There will be layoffs – but you got the numbers wrong
As you might have read yesterday Ericsson is laying off in Estonia. While that is true, the reports – and numbers – are somewhat exaggerated.
This is a part of the company's “global cost and efficiency program” which aims to achieve structural improvements in supply to secure highly efficient. For the Ericsson Supply Site Tallin, this means that in certain areas, Ericsson will increase the utilisation of its global production partners to balance the market fluctuations, yet the fixed base volume production will be kept in-house. And based on these changes, the Ericsson has initiated a workforce reduction process in Estonia. “Last week, the company informed the local personnel in Tallinn of a planned reduction affecting some 70 Ericsson employees at the Supply Site. There will also be reductions in external costs, primarily number of consultants. Here the reduction need is 140 consultants,” Milla Nummenpää, Ericsson communications, told Evertiq in an email statement. “The changes are based on the global cost and efficiency program and the global supply strategy where we will increase the utilization of the global production partners to balance the market fluctuation,” Milla Nummenpää adds.