Ericsson cutting 3,900 jobs in Sweden in cost and efficiency program

Ericsson announces measures intended to be implemented in Sweden, in line with the ongoing cost and efficiency program.

The proposed actions primarily impact production, but also parts of R&D as well as group and support functions. Ericsson today has approximately 16,000 employees in Sweden. The proposed reduction affects approximately 3,000 positions, of which approximately 1,000 positions in production, approximately 800 in R&D and approximately 1,200 in other operations. The proposed reductions will impact operations on the following sites in Sweden: Borundefineds, Goteborg, Karlskrona, Kumla, Linkoping and Stockholm. Ericsson intends to make significant reductions of operations in Borundefineds and Kumla.

The proposed reductions are intended to be met through a combination of voluntary and forced reductions as well as other alternatives such as outsourcing. Ericsson will also make general cost reductions and take out external costs, primarily by reducing the number of consultants in Sweden by 900, but also through general reductions in operating expenses. Union consultations on the proposed changes in Sweden are ongoing. The process will have a step by step approach and, for the majority of the operations, is expected to be concluded during the first quarter of 2017.

The process related to the operations in Borundefineds and Kumla is expected to be concluded during the second half of 2017.

Ericsson intends to continue the discussions with the Swedish union representatives about the need for competence development, flexibility and transformation.