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Ericsson to lay off 2,200 in cost-cutting drive

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Ericsson's Chief Executive Hans Vestberg speaks during a presentation event at the Mobile World Congress in Barcelona this week.

Ericsson's Chief Executive Hans Vestberg speaks during a presentation event at the Mobile World Congress in Barcelona this week.

REUTERS

Ericsson's Chief Executive Hans Vestberg speaks during a presentation event at the Mobile World Congress in Barcelona this week.

Ericsson is planning to cut as many as 2,200 positions in Sweden as part of a cost-reduction plan to improve profitability amid slowing sales.

The reductions, about 2pc of the workforce, will mainly target research and development and supply functions, Stockholm-based Ericsson said in a statement yesterday.

The cuts are part of a programme, which was announced in November, to reduce costs by 9 billion krona (€989m) over three years.

The programme marks a return to job cuts for the world's largest maker of wireless networks as rivals Nokia and Huawei are outpacing it in sales growth while the market for equipment faces a prolonged period of slow expansion.

The wireless-network gear market will grow an average of 2pc to 4pc each year through 2017, Ericsson projected.

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