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Ericsson cuts jobs to save costs

Swedish telecom equipment maker Ericsson has announced plans for cost-cutting measures that it says will save the company approximately US$2 billion a year, starting in 2002.The company says these mea...


May 1, 2001  


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Swedish telecom equipment maker Ericsson has announced plans for cost-cutting measures that it says will save the company approximately US$2 billion a year, starting in 2002.

The company says these measures — what it calls its efficiency program — is a reflection of a slowdown in the economy.

“In today’s uncertain state of the economy with negative signals, Ericsson must react, and we are now taking necessary measures,” Kurt Hellstrm, president and CEO of Ericsson said in a statement. “We have to drive efficiency much harder, with the dedication to become more competitive than ever before.”

The program will result in the elimination of approximately 3,300 jobs in Sweden and Britain, where it will stop production at two of its plants that manufacture mobile phones. In addition, the company has launched a recruitment freeze and reduction in the number of its consultants — in some areas by more than half.


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