Ericsson to Cut-down 2,200 Jobs in Sweden

Published By : 11 Mar 2015 | Published By : QYRESEARCH

Sweden’s telecom giant Ericsson is all set to cut-down its workforce in Sweden by at least 2,200, the company has said in a recent press release. The company has said that it will cut its workforce from company’s offices in Katrineholm, Stockholm, Linköping, Kumla, Karlskrona, Borås, and Göteborg. 

Country’s capital city Stockholm will reportedly be the one to be hit worst by the job-slash, with 1,125 employees required to let go from the company. Karlskrona will see slashing of 85 jobs, Borås of 200, Gothenburg of 140, Kumla of 130, and Linköping of 120 jobs.

The company has said that its negotiations with worker unions are under process and the employees who will be affected by the layoffs will be sent notices in June this year. 

Anders Ferbe, the chairman of a Swedish worker union said in a statement that the layoffs will hit particularly hard at all the employees who have worked loyally with Erricson and helped the company in its development. The layoffs also hit hard all the towns that are affected in the process. 

He added that there is also a risk that as some factories in the telecom and pharmaceutical sectors were dismantled, the research and development activities in Sweden’s telecom sector will also go down the same route. 

The layoffs are as a part of attempts at saving the planned US$1 billion from its global businesses, said the statement released by Ericsson. 

The move has come in between of a week of mayhem for Sweden’s telecom industry, after Sony had recently announced its plans to slash 1,000 jobs at its production facility in Lund.

Ericsson’s CEO Hans Vestberg has said the decision to cut jobs was unavoidable for the company and added that more job cuts are expected across the globe too. 
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