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Ericsson Announces 3,000 Job Losses in Sweden

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Ericsson has announced that it is cutting some 3,000 jobs at its operations in Sweden, out of a workforce of 16,000 representing just under 19% of the total staff.

The proposed actions primarily impact production, but also parts of R&D as well as group and support functions. Approximately 1,000 positions in production, approximately 800 in R&D and approximately 1,200 in other operations.

Counter balancing that, Ericsson intends to recruit about 1,000 R&D positions in Sweden over the coming three years, mainly from universities.

Jan Frykhammar, President and CEO, Ericsson says: "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."

The proposed reductions will impact operations on the following sites in Sweden: Borås, Göteborg, Karlskrona, Kumla, Linköping and Stockholm. Ericsson intends to make significant reductions of operations in Borås and Kumla. The proposed reductions are intended to be met through a combination of voluntary and forced reductions as well as other alternatives such as outsourcing.

Ericsson will also make general cost reductions and take out external costs, primarily by reducing the number of consultants in Sweden by 900, but also through general reductions in operating expenses.

The cost in sales and administration will be reduced as a result of the new company structure introduced July 1, 2016, with the aim to create a more efficient and purpose built organization to meet the needs of different customer segments and more quickly seize business opportunities.

Union consultations on the proposed changes in Sweden are ongoing. The process will have a step by step approach and, for the majority of the operations, is expected to be concluded during the first quarter of 2017. The process related to the operations in Borås and Kumla is expected to be concluded during the second half of 2017.

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Tags: ericsson  Sweden