Ericsson to axe 5,000 jobs

Sweden-based telecoms giant, Ericsson, announced plans today to axe 5,000 jobs as part of a new cost cutting strategy.

The announcement came as the company reported a 31% fall in fourth quarter profits.

Despite a 23% rise in sales, fourth quarter earnings fell on year by 1.7 billion kronor to 3.9 billion kronor (€0.4 billion).

The job cuts will come through layoffs, reductions in the number of temporary staff and consultants, and consolidation of research and development sites, the company said.

Around 1,000 of the job cuts will be in Sweden, primarily in Ericsson’s Stockholm headquarters.

Ericsson said the cost cutting measures are necessary to ensure the survival of the company through the global financial crisis.

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