January 21, 2009

Ericsson to cut 5,000 jobs

Swedish telecommunications giant Ericsson said Wednesday it would lay off 5,000 workers to reduce expenses.

The cuts would include regular staff, temporary workers and consultant positions, CNN reported. In addition, Ericsson said it would consolidate some research and development facilities.

About 1,000 of the job losses would involve jobs in Sweden, the company said.

Ericsson reported fourth quarter sales rose 23 percent. In 2008, Ericsson's sales rose 11 percent compared with 2007, the report said.

But, the company's fourth quarter report cites risks ahead.

The economic recession is spreading across the world, President and Chief Executive Officer Carl-Henric Svanberg said in a statement.

To date, our infrastructure business is hardly impacted at all, but it would be unreasonable to think that this would be the case also throughout 2009, he said.