Ericsson could shed
25,000 jobs in cost-cutting drive: report
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[August 17, 2017]
STOCKHOLM (Reuters) -
Mobile telecom gear maker Ericsson may lay off around
25,000 employees outside Sweden as part of its savings
program, Swedish daily Svenska Dagbladet reported on
Thursday, citing unidentified sources at the company.
Ericsson's flag is seen at the company's headquarters in
Stockholm, Sweden March 11, 2015. TT News Agency/Jonas
Ekstromer/via REUTERS/File Photo
Ericsson said in July it would accelerate measures to meet a
target of doubling its 2016 underlying operating margin of 6
percent and that it aimed to reach an annual cost reduction run
rate of at least 10 billion crowns ($1.2 billion) by mid-2018.
Ericsson has said actions will be taken primarily in service
delivery and common costs while research and development would
be largely unaffected.
The company faces mounting competition from China's Huawei and
Finland's Nokia as well as weak emerging markets and falling
spending by telecoms operators with demand for next-generation
5G technology still years away.
Svenska Dagbladet said it was not clear whether the planned
layoffs included employees within its media operations, which
are up for strategic review and seen by analysts as likely to be
sold by the group.
"Ericsson has not communicated which specific units or countries
could be affected. It is too early to talk about specific
measures or exclude any country," Ericsson said in a statement
on its website.
Ericsson has around 109,000 employees.
(Reporting by Olof Swahnberg; Editing by Dale Hudson)
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