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Ericsson to lay off up to 4,000 workers this summer

If you're an employee of the Swedish telecommunications giant Ericsson, I have some bad news for you. It is being reported that the company is planning on laying off as many as 4,000 employees this summer, with the possibility of even more being fired afterwards.

The company is struggling in the maturing market, the media have reported, and is trying make cost savings of around £850m.

The company itself dismissed the report as a rumour, adding that it doesn't comment on rumours. It did say, however, that it is going to go through with the structural changes it announced on April 21 this year.

The changes should 'accelerate strategy execution and drive efficiency and growth even harder across the company,' The Register cited an Ericsson representative saying.

Ericsson "announced a cost and efficiency program in 2014 with the aim to achieve net annual cost savings of SEK 9bn during 2017."

"This program is on track, but more remains to be done before the program is completed."

The company's shares are down 26 per cent year to date, Reuters said in its report on the matter, adding that Ericsson is thus the 'worst performer in the STOXX Europe 600 Technology Index'. Investors are increasingly concerned about the management's ability to safeguard earnings, it said.

At the end of Q1 2016, the company has had 115,300 employees. At the end of the last year, it was at 116,300.