© ericsson Electronics Production | September 22, 2016
Ericsson comments on speculations on employee reductions in Sweden
Reports of the Swedish telecom giant shutting down production in Sweden and with that laying off 3'000 employees have flooded the Swedish media. The company is now commenting on the speculations.
The company states that back in 2014 it communicated a cost and efficiency program aimed at securing annual cost savings of 9 billion SEK during 2017. This program is progressing according to plan, but is not yet finished. "On July 19, 2016, the Company announced further actions to reduce costs. This means a doubling of the previously announced savings of operating expenses of 4.5 billion SEK (i.e. not a doubling of the entire savings and efficiency program), in order to reach a reduced run rate of operating expenses (excluding restructuring charges) of 53 billion SEK during the second half of 2017. This can be compared to 63 billion SEK for the full year 2014." Ericsson states that it has previously communicated – on several occasions –that these measures mean a reduction of the number of employees worldwide. "We have large operations in Sweden which are not excluded. As we always do for any employee reductions, we will handle this on a country-by-country basis and our employees and, where applicable, union representatives will always be informed first."