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Ericsson sacks R&D, supply employees

Posted: 02 Jul 2015 ?? ?Print Version ?Bookmark and Share

Keywords:layoff? R&D? job cut?

Following Ericsson's announcement of its efficiency and cost-reduction plan in March, the company will cut off 10 per cent of its Swedish workforce. This equates to about 2,100 jobs and is expected to generate savings of $301 million in the second quarter of the year.

Ericsson hopes to save approximately 9 billion Swedish Krona ($1.08 billion) by 2017. Cuts were made mainly in research and development and supply with around 1,700 employees leaving the company. Other restructuring occurred in divisions such as power modules, which operated as a stand-alone unit and will now operate under Ericsson's radio business unit.


"The official motivation was the decline of 2G and leapfrog over 3G from operators switching to 4G," said a former Ericsson employee who wished to remain anonymous. "The main reason is flat sales and significant loss of business to Huawei."

Ericsson's last layoff occurred 2.5 years ago with regular layoffs occurring every two years or so. Laid off Ericsson engineers created a large talent pool for competitor Huawei, which expanded its European presence to include an R&D centre in Sweden.

Ericsson did not return requests to comment on the total size of its workforce.

- Jessica Lipsky
??EE Times U.S.

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