5000....Strong Profit, but Ericsson Plans 5,000 Job Cuts
DAVID JOLLY
Published: Thursday, January 22, 2009 at 5:12 a.m.
Last Modified: Thursday, January 22, 2009 at 5:12 a.m.
PARIS — Ericsson, the Swedish maker of wireless networking gear, posted an unexpectedly strong profit Wednesday but said it would cut as many as 5,000 jobs in anticipation of a slowdown.
The Ericsson chief executive, Carl-Henric Svanberg, said on Wednesday in an interview that the company would speed up restructuring efforts despite having largely escaped the fallout from the recession so far. He spoke after Ericsson posted a sixth consecutive year of revenue growth in 2008, paced by worldwide growth in mobile communications.
Ericsson will lay off workers, reduce the number of consultants and other temporary staff, and consolidate research and development activities. About 1,000 of the 5,000 job cuts will affect Swedish employees, primarily in Stockholm. The company declined to say where the rest would be cut.
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