Report: Ericsson looks to cut 25,000 jobs

Ericsson is reportedly considering cutting some 25,000 employees outside of Sweden in its efforts to cut costs.

This is according to a report in Swedish newspaper Svenska Dagbladet, which was picked up by Reuters today, and said that it is unclear if the layoffs would include employees within Ericsson’s media operations.

Responding to the report, Ericsson reiterated that a key component in its ‘focused business strategy’ is to “reduce costs and increase efficiency”, but would not say which specific units or countries that could be affected.

“In connection with the Q2 report 2017, Ericsson communicated that the company, in light of the current market outlook, will accelerate the planned actions to ensure that the target of doubling the 2016 operating margin beyond 2018 can be met,” said Ericsson in the statement.

“Actions will be taken primarily in service delivery and common costs, but do not include R&D. The plan is to implement cost savings with an annual run rate effect of at least SEK 10 billion (€1.05 billion) by mid-2018, of which approximately half will be related to common costs.

“It is too early to talk about specific measures or exclude any country. As Ericsson executes on these plans to save costs, the company will communicate this, and to what extent employees could be affected.”

In March, Ericsson said it expected to endure roughly SEK 6-8 billion in restructuring charges in 2017, with roughly SEK 2 billion of these having fallen in Q1.

At the time Ericsson said it would “explore strategic opportunities” for its media business while developing its media solutions.

It said it plans to create two separate units, Ericsson Broadcast & Media Services and Ericsson Media Solutions, to create a “stronger operational focus”.