The announcement came on Thursday morning. According to the company's press manager Ralf Begner, it is a consequence of competitive pressure in the telecom industry.
The mobile network market is very tough and competitive. The market has not shown any growth and inflationary pressure is continuing, he tells TT and elaborates:
This in turn means that we must continue to work on our costs to ensure our long-term technology leadership. These initiatives will continue throughout the year across the company.
Has 12,600 employees in Sweden
Ericsson has approximately 12,600 employees in Sweden. This means that more than one in ten employees in Sweden will be laid off. Union negotiations have now begun, but the company cannot currently say who will be affected.
It is part of a global initiative. It is always disappointing to have to make decisions that affect employees, and it is very important that we are able to inform those affected first, says Ralf Begner.
What timeframes are we talking about?
I can't say exactly how long it will take, but our ambition is for it to be completed during the year.
Positive tones
According to the union, it all came as a big surprise.
"For most employees, this came completely unexpectedly. Otherwise there have been positive comments," says Per Norlander.
This is far from the first time he has been forced into negotiations over cuts. He is especially critical this time.
It's a brutal way to do it; this is not good for the company.
It impacts directly on the core business, on research and development, and on products we will later invoice for, he continues.
No general redundancy package has been presented to the union yet.
