Sweden’s Telefon Cuts 10,000 Jobs
STOCKHOLM, Sweden (AP) _ Swedish telecommunications company Telefon AB LM Ericsson said Wednesday it will cut an additional 10,000 workers, or about 9 percent of the company’s overall work force.
The layoffs will affect people involved in production or administration at its Infocom Systems unit, which makes switches and other equipment for traditional phone networks.
Most of the job cuts will take place next year. They are in addition to 10,000 cuts that took place over the last two years, the company said.
Ericsson estimated the new round of layoffs will reduce annual expenses by more than 2 billion kronor, or $266 million. The company earned 10.33 billion kronor before taxes in the first nine months of 1997.
Ericsson is one of the world’s biggest makers of telecommunications equipment, with 90,000 employees in more than 130 countries. The company makes products for wired and mobile phone networks.
The Infocom unit will also put greater focus on new products for multimedia communications.
``With the changes we are now implementing, we will increase our profitability and strengthen our market position as one of the leading suppliers of solutions for multimedia communications,″ said Anders Igel, head of Infocom Systems.