Ericsson profit declines, plans to cut 5,000 jobs

Swedish telecom vendor Ericsson had a good fourth quarter, but will still lay off 5,000 employees in a continuing effort to cut costs.

Swedish equipment vendor Ericsson saw declining profits for its fourth quarter and will lay off 5,000 employees in a continuing effort to cut costs, the company said Wednesday.

The company plans to achieve annual savings of 10 billion Swedish kronor (US$1.2 billion) from the second half of next year through the job cuts.

Around 1,000 people will be laid off in the Stockholm area. Ericsson will also reduce the number of consultants and other temporary staff, it said in a statement.

Ericsson has to be prepared for tougher times and do everything it can to defend its current market position, according to CEO Carl-Henric Svanberg. Ericsson warned that it's difficult to predict to what extent consumer spending on telecom services will be affected in the future.

Ericsson said its core infrastructure business has hardly been hit by the recession so far, but the company did see declining profits. Sales for 2008, however, were up compared to a year prior.

The company made a net profit of 3.9 billion kronor during the fourth quarter, compared to 5.6 billion kronor during the same period in 2007. Full-year profits came in at 11.3 billion kronor, down from a net profit of 21.8 billion in 2007.

At the same time, sales during the fourth increased by 23 percent to 67 billion Swedish kronor compared to a year earlier. Sales for 2008 came to 208.9 billion kronor, 11 percent higher than 2007.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Ericssonlayoffs

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Mikael Ricknäs

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?