Ericsson profit declines, plans to cut 5,000 jobs
Says company must be prepared for tough times
IDG News Service - Swedish telecom equipment vendor Ericsson saw declining profits for its fourth quarter and will lay off 5,000 employees in a continuing effort to cut costs, the company said today.
The company plans to achieve annual savings of 10 billion Swedish kronor ($1.2 billion U.S.) from the second half of next year through the job cuts.
Around 1,000 people will be laid off in the Stockholm area. Ericsson will also reduce the number of consultants and other temporary staff, it said in a statement.
Ericsson must be prepared for tougher times and do everything it can to defend its current market position, said CEO Carl-Henric Svanberg. Ericsson said it's difficult to predict to what extent consumer spending on telecom services will be affected in the future.
Ericsson said its core infrastructure business has hardly been hit by the recession so far, but the company did see declining profits. Sales for 2008, however, were up compared to the previous year.
The company made a net profit of $466 million during the fourth quarter, compared to $669 million during the same period in 2007. Full-year profits came in at $1.3 billion, down from a net profit of $2.6 billion in 2007.
At the same time, sales during the fourth quarter increased by 23% to $8 billion compared to a year earlier. Sales for 2008 came to $25 billion, 11% higher than 2007.
- Microsoft to cut 5,000 jobs as profits fall
- Ballmer: Microsoft strained to minimize layoffs
- Frankly Speaking: For Microsoft, the pain is just beginning
- Microsoft layoffs could boost Seattle's tech industry in long run
- Sun trims 1,300 jobs; IBM layoffs start
- Intel to shut four plants, lay off 6,000
- Lenovo to lay off 2,500 staff, cut management pay
- Ericsson profit declines, plans to cut 5,000 jobs
- AMD to cut 1,100 jobs and slash salaries across company
- Mission Critical: Managing Mobile Applications & Content Smartphones, tablets and other mobile devices have become embedded in enterprise processes, thanks to the consumerization of IT and a new generation of...
- Securing Mobility, From Device to Network At one time, the process of managing and securing mobile devices and applications was fairly straightforward. Most organizations worried about one application (email)...
- Planning for Mobile Success Many organizations are seeing clear and quantifiable benefits from the deployment of mobile technologies that provide access to data and applications any time,...
- The Challenges and Opportunities of Mobile Application Development Nearly all business users now demand mobile devices--their own or company-owned--along with anywhere access to corporate applications and data. What turns mobile devices...
- On Demand: Mastering the Art of Mobile Content Management Mobile device usage in the enterprise has skyrocketed, and it continues to escalate. IT must answer to users who demand access to their...
- Technology for Everyone A Kansas school district modernizes teaching and learning and paves the way to a one-to-one program with a comprehensive upgrade of its wireless... All Mobile/Wireless White Papers | Webcasts