Ericsson announces 2,200 redundancies

Ericsson is making 2,200 redundancies in Sweden, mainly in R&D and supply, as part of a wider two-year cost-cutting campaign.

Previously announced at the company’s Capital Markets Day in November, the company gave out more details about the programme, including where the axe is going to fall.

There are set to be further redundancies outside Sweden as part of the same two-year programme, in addition to today’s announcement.

The company also confirmed the previously announced aim of saving SEK9 billion (US$1.2 billion) over the same period.

The aim is to reduce cost, both by cutting headcount and hitting external costs through a programme that will run through 2017.

Ericsson hopes to deploy the savings on growth areas, such as IP, cloud, TV & media and OSS/BSS.

This year’s efficiency drive will target R&D, service delivery, and the supply chain but the company is also casting an eye over sales, general, and administration, as well as external costs such as outside consultants and consolidating its IT portfolio.

As part of its programme, the company is establishing three global ICT centres with a common test and development strategy and methodology for R&D.

Ericsson has 115,000 employees globally and given its ongoing shift in focus in recent periods, the company has been changing its mix of employees. During 2014 it let go 15,000 employees but hired 19,000 staff for a net gain of about 4,000, taking its global total headcount to 116,000 at the end of 2014.