Ericsson to cut 2,200 jobs in restructuring plan

Dylan Bushell-Embling
12 Mar 2015
00:00

Ericsson has revealed plans to cut around 2,200 jobs as part of the next stage of its cost cutting and efficiency program.

The company said in a statement that it will abolish 2,200 positions in Sweden, mostly related to R&D and supply.

The cost-cutting efforts will also sales and administration, and Ericsson said it also plans to reduce the number of consultants it engages.

Other efficiency efforts will revolve around improving service delivery and supply, as well as the consolidation of Ericsson's ICT portfolio.

As part of the R&D reforms, Ericsson plans to establish three global ICT centers with a common methodology for R&D and a common test and development strategy.

Ericsson first announced its cost and efficiency plan in November. The program targets savings of around 9 billion kronor ($1.04 billion) from 2017 by reducing operating expenses and costs of sales across all the vendor's operations, units and functions.

The program is expected to generate around 3-4 billion kronor in restructuring charges between 2015 and 2017, on top of a 2 billion kronor restructuring charge already set aside.

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