ERICSSON:MUST LAY OFF AT LEAST 10,000 ACC TO ANALYSTS-DI.SE
(News agency Direkt) -- Telecom analysts expect that Ericsson will be forced to implement further staff cuts in order to reach the announced savings target of 20 billion kronor.
"It`s not enough with a couple of thousand employees. At least 10,000 more employees will have to leave Ericsson," Handelsbanken stock market strategist and Ericsson analyst Lars Soderfjell told web magazine di.se.
In an calculation example Soderfjell shows that the savings target is equivalent to a staff decrease of 25,000 employees if all savings are to be made through staff cuts.
"It won`t be 25,000. There are consultants and other cost cuts to be made as well. But I am convinced that Ericsson will need to decrease their staff by an additional 10,000 employees. We`ve only seen the beginning," Soderfjell said.
The size of the total savings target of 35 billion kronor, including the previously announced austerity program, also gives negative signals on how the operations are run today, according to analysts.
"That there are 35 billion kronor to be made in cost cuts says something about how ineffective the organization has been previously. It means that Ericsson is cleansing its entire organization, not only the telephone business are," Ohman analyst Helena Nordman-Knutson told di.se. |
