Ericsson to slash nearly 14,000 jobs by end of 2004

Ericsson plans to cut nearly 14,000 jobs by the end of 2004, after posting yet another quarterly loss.

Ericsson plans to cut nearly 14,000 jobs by the end of 2004, after posting yet another quarterly loss.

Ericsson's workforce of around 61,000 at the end of the first quarter 2003 will shrink to 52,000 by the end of the year and 47,000 by the end of the third quarter of 2004, president and chief executive officer Carl-Henric Svanberg said.

At the end of the first quarter in 2002, the company employed around 107,000 people.

Svanberg, who took over the helm of the financially troubled Swedish provider of wireless equipment and network services, is stepping up efforts to cut costs and return the company to profit.

Ericsson posted a first quarter net loss of 4.3bn Swedish kronor (£330m) on sales of 25.9bn kronor. This compared to a loss of 3bn kronor (£230m) on sales of 37bn kronor for the same period the year before.

Sony Ericsson Mobile Phones, the subsidiary into which Ericsson folded its mobile phone business, shipped 5.4 million units in the first quarter, down 7% compared with the first quarter of 2002.

The Swedish company's focus on mobile infrastructure backfired after mobile operators in Europe spent billions of dollars on acquiring 3G (third-generation) broadband mobile internet licences and the global economy weakened.


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