Menu
Ericsson will lay off 3,000 this summer, says Swedish newspaper

Ericsson will lay off 3,000 this summer, says Swedish newspaper

Ericsson is two years into a three-year cost-cutting program -- but needs to make still greater savings

Ericsson is preparing to lay off between 3,000 and 4,000 staff this summer, according to Swedish newspaper Svenska Dagbladet.

Thousands more may have to go at the network equipment manufacturer as management look for additional cost savings of 10 billion Swedish kronor (US$1.2 billion), the newspaper said, citing anonymous sources.

Ericsson had around 115,000 staff in April, 17,000 of them in Sweden

A spokeswoman declined to discuss Tuesday's news report, saying the company does not comment on rumors and speculation.

Ericsson is facing increasing competition from a more focused Nokia, which swallowed its Franco-American rival, Alcatel-Lucent, earlier this year, and especially from Chinese vendors such as Huawei Technologies or ZTE. It's a critical time for wireless infrastructure vendors and their carrier customers, as they taper off investment in fourth-generation networks in preparation for the next, still largely undefined, generation of technology.

Hans Westberg, Ericsson's President and CEO, announced a restructuring in April, after disappointing sales and profit growth in the first quarter. The wave of management changes will take effect on July 1, as the company reorganizes around two networking business units, one for products and one for services, and two cloud business units, again for products and services. Ericsson is also focusing centralized sales teams on media and on industrial customers. The new organization will be "leaner, more fit for purpose," Vestberg said.

The company is already two years into a three-year program to slice 9 billion kronor off its annual costs, and while that program is on track, the company has already begun taking additional cost-cutting measures, according to the spokeswoman.

"We are adapting our operations to current mobile broadband project volumes, which primarily impacts service delivery," she said via email.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Featured

Slideshows

Reseller News launches inaugural Hall of Fame lunch

Reseller News launches inaugural Hall of Fame lunch

Reseller News welcomed 2015 and 2016 inductees - Darryl Swann, Dave Rosenberg, Gary Bigwood, Keith Watson, Mike Hill and Scott Green - to the inaugural Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed how the channel can collectively work together to benefit New Zealand, the Kiwi skills shortage and the future of the industry. Photos by Maria Stefina.

Reseller News launches inaugural Hall of Fame lunch
Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Show Comments