Swedish telecom equipment maker Ericsson has announced plans to cut 3,000 jobs in production, research and development and sales and some 900 consultants in Sweden. Hayley Platt reports.
It's one of Sweden's biggest employers but it's getting smaller. Fierce competition just one of the reasons Ericsson is axing the majority of its manufacturing in Sweden. It only represents around 5 percent of its global production but around 3,900 jobs will go - almost a quarter of its Swedish workforce. (SOUNDBITE)(Swedish) ERICSSON EMPLOYEE, NAME NOT GIVEN, SAYING; "We've become like a family. I've been here since 1992 .. that's a while.. but now it's over." Most of the jobs will go from production, research and development. (SOUNDBITE) (English): DARREN SINDEN, INDEPENDENT MARKET ANALYST, SAYING: "5G which is the next generation of mobile phone technology is not really up and running yet so there's a cyclical low in the demand for their products. They face fierce price competition from Huwai based in China with a much lower cost base and rival Nokia and it's very difficult to compete against that when you're having to pay Swedish wages." The cuts are no surprise. Two years ago Ericsson announced cost cuts of $1 billion. Its shares have fallen around 25 percent this year. And jobs losses in Sweden have been on the cards. There's one vacancy though - that of CEO after Hans Vestberg was outsted in July.