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Swedish Ericsson plans to lay off 25,000

by on17 August 2017

Needs to improve its margins as figures borked 

Mobile telecom gear maker Ericsson may lay off around 25,000 employees outside Sweden as part of its savings programme.


The Swedish daily Svenska Dagbladet said that Ericsson said in July it would accelerate measures to meet a target of doubling its 2016 underlying operating margin of six percent and that it aimed to reach an annual cost reduction run rate of at least $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 was unsure if 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.

Last modified on 17 August 2017
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