Ericsson cuts leave NZ largely unscathed

Ericsson cuts leave NZ largely unscathed

Communications vendor Ericsson says only one of its 40 locally-based staff will be cut after a reorganisation of the company’s workforce in Australia and New Zealand.

Ericsson did not specify which local role was affected under the changes, which it says are designed to “align resources and capability closer to Australian and New Zealand customers”.

Across the Tasman, the company plans to cull about 80 permanent staff and 10 contractors. It currently employs about 1400 people there.

“These changes are designed to ensure that Ericsson has the right skills close to our customers, so we can be a more responsive and innovative business partner,” says trans-Tasman CEO Sam Saba.

He adds current and future projects with Ericsson customers in Australia and New Zealand will not be affected by the changes.

The vendor says it made the changes because demand on Australian operations was reducing as other Ericsson sites around the world were becoming more independent of the Australia, which had previously been used by other locations as a hub of technical competence.

“This reduced demand, combined with an assessment of current and anticipated business, has led to the decision to repatriate a number of highly-skilled Australian employees working overseas, as well as the identification of areas of over-capacity for particular competencies,” Ericsson says in a statement. “This will mean some reductions in permanent and contract staff over the coming months.”

However, Ericsson plans to hire as many as 50 new staff in Australia by next June, in areas such as mobile evolution, operational support systems and project management.

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