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The
Swedish company, whose share price has fallen around 25 percent
this year and which is looking for a new CEO after Hans Vestberg
was ousted in July, said on Tuesday around 3,000 jobs would go
in production, research and development (R&D) and other
operations, as well as 900 consultants.
"The measures are necessary to secure Ericsson's long term
competitiveness as well as technology and services leadership,"
acting CEO Jan Frykhammar said in a statement.
The job cuts deal a blow to Sweden, where Ericsson is one of the
country's biggest employers and where politicians and unions
have scrambled in recent weeks to save jobs.
Ericsson currently employs about 16,000 people in Sweden.
The company said in July it would step up efficiency measures
due to a tough market, having already announced a 9 billion
Swedish crown ($1.1 billion) cost-cutting program in 2014.
The 1,000 jobs that will go in manufacturing remove the majority
of Ericsson's production in the country, which currently
represents about 5 percent of its global production.
Ericsson, which has backing from two of Sweden's most prominent
investors - Wallenberg-backed Investor <INVEb.ST> and
Industrivarden <INDUa.ST> - has come under growing pressure for
its poor performance in recent years and for being slow to
address stagnating demand for its core base stations.
The company also said, however, it would recruit about 1,000 R&D
positions in Sweden over the coming three years to support
technology shifts, new customers and more software development.
It added its cost and efficiency program was on track.
(Reporting by Olof Swahnberg and Helena Soderpalm; Editing by
Niklas Pollard and Mark Potter)
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