Ericsson announced that its restructuring program is ahead of schedule in Sweden. In October, the company announced plans to eliminate 3,000 position in Sweden through a combination of a voluntary reduction program, reduction of production in Sweden, outsourcing and natural attrition during 2016.
Ericsson said the voluntary program in Sweden has been successfully completed and 1,600 employees will leave Ericsson through the program on December 31, 2016. Currently, no further forced staff reductions are planned in Sweden beyond what has already been announced relating to production sites.
Overall, Ericsson said its global cost and efficiency program is tracking towards the previously communicated target to:
- reduce the annual run rate of operating expenses, excluding restructuring charges, to SEK 53 b. in the second half of 2017.
- make cost of sales reductions visible in the gross margin in the second half of 2017, compared to full year 2016.
https://www.ericsson.com/news/2062901
Ericsson to Cut 3,000 Positions in Sweden
Ericsson announced plans to trim approximately 3,000 positions in Sweden, including about 1,000 positions in production, approximately 800 in R&D and approximately 1,200 in other operations. The job reduction represents about 19% of its current workforce of 16,000 employees in Sweden.
"Ericsson is going through a large transformation. We continue to have a strong focus on R&D, and since many years, most Ericsson employees work in software development and services, rather than hardware production. The measures are necessary to secure Ericsson's long term competitiveness as well as technology and services leadership," stated Jan Frykhammar, President and CEO, Ericsson.
The company said the cuts will come through voluntary separation, forced reductions and outsourcing. Ericsson intends to make significant reductions in operations in Borås and Kumla.
https://www.ericsson.com/news/2046462
"Ericsson is going through a large transformation. We continue to have a strong focus on R&D, and since many years, most Ericsson employees work in software development and services, rather than hardware production. The measures are necessary to secure Ericsson's long term competitiveness as well as technology and services leadership," stated Jan Frykhammar, President and CEO, Ericsson.
The company said the cuts will come through voluntary separation, forced reductions and outsourcing. Ericsson intends to make significant reductions in operations in Borås and Kumla.
https://www.ericsson.com/news/2046462
