Ericsson is making another 5,000 staff redundant as part
of a $1.2bn cost reduction programme, despite reporting better than
expected fourth quarter results.
The Swedish firm
said sales had risen 23% and earnings per share were ahead of
expectations.
However, the firm said a further 5,000 jobs would be going
across the group worldwide, with about 1,000 going in Stockholm.
The move extends a cost-cutting programme started last year -
Ericsson cut 4,000 jobs - although the company has been shedding
staff for years.
Once Ericsson lost its number two position in the mobile phone
market behind Nokia some years ago, thousands of jobs were shed
across both its mobile phone manufacturing business and its network
equipment operations.
"We have had a solid performance in 2008," said Carl-Henric
Svanberg, Ericsson's chief executive. "Professional services have
continued to show strong growth. Operating margins, excluding Sony
Ericsson, have steadily improved, and our financial position is
strong with net cash of SKr35bn," he said.
But Svanberg said the situation was expected to deteriorate in
2009 as the global recession took hold.
The company will now axe consultants and other temporary staff,
consolidate R&D sites and make other layoffs.