Ericsson slash 1500 more jobs

Swedish network infrastructure supplier Ericsson has said it will cut an extra 1,500 jobs on top of 2009 targets, as it reported another massive quarterly drop in profits. The company’s planned 5000 head-count reduction for 2009 was exceeded, and is now expected to top 6500.

Net profit for October to December was 314 million kronor (£27m), compared with 3.89 billion kronor (£333m) for the same period in 2008. Ouch.

Hans Vestberg, President and CEO allocates some of the blame to heavily reduced operator spending during the second half of the year. The press release also details restructuring costs, from voice telephony towards mobile broadband, as requiring significant spend by Ericsson.

These latest results were much worse than market forecasts, which expected to see a net profit of 3.23bn kronor.

"You know, the market is weak, but one might have hoped for some recovery in quarter four," said analyst Michael Andersson of Evli Bank. Cold comfort for the employees who probably think Evli Bank contains a transposition error on my part.

Like to know more? press release here

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