Internal documents: Ericsson shutting down production in Sweden

According to a confidential savings plan – which Swedish newspaper Svenska Dagbladet has obtained – the company is planning on reducing its workforce by 3’000 employees, most of which will come from the Network products unit. And with that, Ericsson removes manufacturing from Sweden completely after 140 years. The company employs about 800 people in the Swedish city of Borås, and roughly 400 in the city of Kumla. These last Swedish manufacturing units will now close shop. However, the total number of layoffs directly linked to manufacturing is 1’800, and the redundancies will also affect white collar workers – around 1'050 people may need to go which brings up the total to 2'850. The report also states that other operations within the Networking group will be scaled down, bringing the total up to 3000. The company management is currently negotiating with the unions. The confidential savings plan that the paper has obtained details the size of the saving and cutbacks in the company’s largest business unit – Network products. However big savings and/or cutbacks the company will make in total is not clear, the article concludes.