| Author |
Ericsson to cut 5,000 jobs after reporting losses. |
whizkidd
Joined: May 14, 2004
Posts: > 500
From: India
PM, WWW
|
STOCKHOLM, Sweden (AP) -- Wireless equipment maker LM Ericsson on Wednesday posted a 31 percent drop in fourth-quarter net profit, partly due to weaker handset sales, and said it would slash 5,000 jobs to cut costs.
Ericsson said net profit fell to 3.9 billion kronor ($465 million), from 5.6 billion a year earlier, citing restructuring charges and "a dramatic drop" in the contribution from its handset unit, Sony Ericsson.
The joint venture with Japan's Sony last week swung to a fourth-quarter loss of euro187 million ($243 million).
Boosted by a weakening krona, Ericsson's sales in the quarter rose 23 percent to 67 billion kronor, from 54.5 billion kronor a year earlier.
The world's leading maker of mobile broadband infrastructure released the fourth-quarter results ahead of schedule, but did not give any reasons.
It said it needs to widen its savings program as the global financial crisis continues to pressure the industry. That would mean cutting 5,000 jobs, or more than 6 percent of its 79,000-strong work force, Ericsson said.
The Stockholm-based company said it expected restructuring charges of 6 billion-7 billion kronor, yielding annual savings of around 10 billion kronor by the second half of the year.
Chief Executive Carl-Henric Svanberg warned that the financial downturn makes it "difficult to more precisely predict to what extent consumer telecom spending will be affected, and how operators will act."
Via: Associated Press
T230 >> T610 >> Ngage QD >> N73 >> N85 >> Omnia HD >> And countless other review units | |
|
mikeb
Joined: Nov 12, 2002
Posts: 98
From: Sweden
PM |
Hi,
this is a very mis-leading post.
Ericsson did not report losses, in fact the report is out 1 week early because they had better than expected results.
Yes, they plan to cut 5000 jobs, however this is because they do not know how the market in 2009 will react to the financial crises.
Full info can be found here:
http://www.ericsson.com/erics[....]eleases/20090121-1283701.shtml
Regards,
/Mike B. |
strizlow800
Joined: Aug 23, 2006
Posts: > 500
From: Macedonia, Skopje
PM |
Hmm that's bad... Closing jobs may make the things worse imho... Hope they don't cut some of the most important ones. 
| |
|
Access the forum with a mobile phone via esato.mobi
|
Posted: 2009-01-21 10:22
Sony Ericsson software/hardware support! 
