Ericsson to reportedly lay off 130, move jobs to China

Wireless equipment Ericsson said that it would lay off 130 of its 230 employees at a unit in Kalmar, Sweden, and move manufacturing jobs to China, according to an Associated Press report.

The Kalmar unit makes power modules for telecommunications equipment, such as radio base stations. The unit will be restructured to focus on research and development as the manufacturing moves to China, a company spokesman was quoted as saying.

Layoff notices will be given to employees later this year after negotiations with labor unions. The restructuring is estimated to be completed in 2007, according to the report.

Ericsson Power Modules, part of the Ericsson group, also has facilities in Shanghai, China. The company's design centers are in Stockholm, Shanghai and in Plano, Texas.

In May, Ericsson said it would cut 250 jobs and close the U.S. branch office of its Mobile Systems CDMA unit in San Diego, to cut costs amid slumping mobile phone sales.

- Spencer Chin

EE Times