On August 17 news, according to Reuters, "Sweden Daily" quoted sources as saying on Thursday that as part of the cost-cutting plan, Sweden's mobile communications equipment maker Ericsson may cut about 25,000 employees outside Sweden.
Ericsson said in July this year that it will expedite its measures to achieve its target of doubling its operating profit margin this year from 6% in 2016. At the same time, by mid-2018, it will cut costs by at least SEK 10 billion annually (about 1.2 billion USD).
Ericsson said that cutting costs will be mainly focused on service delivery and common costs, and R&D will not be substantially affected.
Currently, the company is facing increasingly fierce competition from China’s Huawei and Finland’s Nokia, as well as weak emerging markets and telecom operators’ continuous reductions in spending. For next-generation 5G technologies, these telecom operators will not be in demand for several years.
"Sweden Daily" stated that it is not yet clear whether Ericsson's planned layoffs include employees of its media business. The company is making a strategic assessment of the business and analysts believe it may be sold.
Ericsson stated in a statement on its website: “Ericsson does not specify that employees in those departments or countries may be affected. It is too early to talk about specific measures or to exclude employees in that country.â€
Worldwide, Ericsson has about 109,000 employees and 25,000 people make up 22.9% of its workforce. (Liu Chun)
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