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Ericsson to slash nearly 14,000 jobs by Q3 2004
Computerworld ^ | APRIL 29, 2003 | John Blau

Posted on 05/05/2003 10:31:19 AM PDT by Mini-14

After posting yet another quarterly loss, Sweden's LM Ericsson Telephone Co. announced plans to cut nearly 14,000 jobs by late 2004.

Ericsson's workforce of around 61,000 at the end of the first quarter of 2003 will shrink to 52,000 by the end of the year and to 47,000 by the end of the third quarter of 2004, President and CEO Carl-Henric Svanberg said today at a news conference to announce the company's quarterly results.

At the end of the first quarter of 2002, the company employed around 107,000 people, a company spokesman said.

Svanberg, who took over the helm of the financially troubled Swedish provider of wireless equipment and network services, is stepping up efforts to cut costs and return the company to profitability.

Ericsson posted a net loss of $504 million on sales of $3.1 billion for its first quarter, which ended March 31. The company reported a loss of $300 million on sales of $4.4 billion for the same period a year earlier, according to a company statement.

Earnings per share amounted to a loss of 3 cents, narrowly missing the forecast from SME Direkt, a Stockholm-based provider of analysts' consensus forecasts for Nordic companies.

Sony Ericsson Mobile Phones AB, the subsidiary into which Ericsson folded its mobile phone business, shipped 5.4 million units in the first quarter, down 7% compared with the first quarter of 2002, Ericsson said.

The Swedish company's focus on cellular infrastructure backfired after mobile operators in Europe spent billions on acquiring third-generation broadband mobile Internet licenses and the global economy weakened.


TOPICS: Business/Economy; Culture/Society; Foreign Affairs
KEYWORDS: employment; h1b; job; jobs; l1; unemployment

1 posted on 05/05/2003 10:31:19 AM PDT by Mini-14
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To: Mini-14
It's too bad to see so many jobs lost from one company, especially in such a small country. The sadder part is the failure of the Swedish government (and by reflection, many of it's people) to see the importance of helping squelch terrorism and restoring the global stability which encourages consumer consumption and business growth, thereby saving jobs and creating more.

Ironically, many of these unemployed will leave faltering Europe and move to America and take advantage of the people and the economy which paid the price, both financial and in human life, for providing their jobs. That's OK, but like immigrants from everywhere, more than a few will bring their defective politics with them and vote to weaken the America which receives them.

2 posted on 05/05/2003 10:53:40 AM PDT by DensaMensa (He who controls the definitions controls History. He who controls History controls the future.)
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To: DensaMensa
"If you pick up a starving dog and make him prosperous, he will not bite you; that is the principal
difference between a dog and a man." -- Mark Twain
3 posted on 05/05/2003 11:00:30 AM PDT by DensaMensa (He who controls the definitions controls History. He who controls History controls the future.)
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To: DensaMensa
Ericcson actually has manufacturing facilities in the U.S.
4 posted on 05/05/2003 11:21:25 AM PDT by Mini-14
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To: Mini-14
Wonder where the cuts will be made?
5 posted on 05/05/2003 11:35:20 AM PDT by DensaMensa (He who controls the definitions controls History. He who controls History controls the future.)
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To: DensaMensa
Ironically, many of these unemployed will leave faltering Europe and move to America

Exactly how will they do that? FYI, it's very difficult for a European, even a well-qualified European, to emigrate to the US (assuming they don't want to become an illegal).

I gather from these boards that the tech industry ain't exactly hot in the US, either, at the moment.

6 posted on 05/05/2003 11:37:49 AM PDT by alnitak ("That kid's about as sharp as a pound of wet liver" - Foghorn Leghorn)
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To: DensaMensa
One website reports "...more than twenty thousand Ericsson employees in the United States, Canada, and Latin America." Leaves 2/3 of the employees probably in Sweden/Europe. Guess manufacturing plants will take the biggest hits.
7 posted on 05/05/2003 11:49:56 AM PDT by DensaMensa (He who controls the definitions controls History. He who controls History controls the future.)
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To: alnitak
(...assuming they don't want to become an illegal)

That is a major part of our problem today.

8 posted on 05/05/2003 11:51:09 AM PDT by DensaMensa (He who controls the definitions controls History. He who controls History controls the future.)
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