Ericsson to cut 3,000 positionsStaff Writer | October 4, 2016
Ericsson announced measures intended to be implemented in Sweden, in line with the ongoing cost and efficiency program.
Restructuring Ericsson has 16,000 employees in Sweden
Ericsson today has approximately 16,000 employees in Sweden. The proposed reduction affects approximately 3,000 positions, of which approximately 1,000 positions in production, approximately 800 in R&D and approximately 1,200 in other operations.
The proposed reductions will impact operations on the following sites in Sweden: Borås, Göteborg, Karlskrona, Kumla, Linköping and Stockholm. Ericsson intends to make significant reductions of operations in Borås and Kumla.
The proposed reductions are intended to be met through a combination of voluntary and forced reductions as well as other alternatives such as outsourcing.
Ericsson will also make general cost reductions and take out external costs, primarily by reducing the number of consultants in Sweden by 900, but also through general reductions in operating expenses.
Ericsson has continued to drive change in its global R&D organization to increase efficiency, optimize operations and reduce the number of R&D sites globally. Ericsson in Sweden is the base for R&D in radio technology and 5G.
Ericsson has invested SEK 7 billion in three global ICT centers supporting R&D operations and forming the base for new digital business models. Two of them are in Sweden, in Rosersberg and in Linköping, strengthening Sweden's role as a platform for R&D in Ericsson. ■