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Ericsson said in July that it would step up cost cuts in the
face of deteriorating market conditions, having already
announced a 9 billion Swedish crown ($1.1 billion) cost-cutting
program in 2014.
Manufacturing facilities in the cities of Boras and Kumla will
be closed, the paper reported, citing internal documents. The
decision ends 140 years of production in Sweden for the company
that began as a producer of telegraph and telephony equipment.
The planned closures are expected to save about 3 billion
crowns, Svenska Dagbladet reported.
Union representative Per Norlander, however, told Swedish radio
that negotiations had not resulted in a final decision.
"It's absolutely not certain they will be closed," Norlander
said.
Ericsson told Reuters on Thursday that it would reduce staff
worldwide.
"We have large operations in Sweden, which are not excluded,"
its communications department said in an email. "Our employees
and, where applicable, union representatives will always be
informed first."
Svenska Dagbladet reported that the affected jobs are in the
network products division, the company's biggest business area.
Ericsson, which has about 120,000 employees worldwide including
17,000 in Sweden, has been contending with stagnant demand in
developed markets where the most advanced networks have largely
been built already.
($1 = 8.5308 Swedish crowns)
(Reporting by Mia Shanley, additional reporting by Olof
Swahnberg; Editing by Toby Chopra and David Goodman)
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