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To: Neeka who wrote (391)	10/9/2002 10:44:43 AM
From: waitwatchwander	Respond to of 426

Ericsson reconsiders local layoffs [ Montreal's labour costs (in loonies) are 2/3rds that of San Diego's and the snow keeps folk inside ... working hard. ] canada.com Fifty to 100 employees might not lose jobs as more work shifted here from San Diego ANDY RIGA The Gazette Wednesday, October 09, 2002 Ericsson Canada offered a bit of sunny news yesterday in the bleak, layoff-plagued Montreal telecommunications industry. The company, which is laying off thousands of employees worldwide in the midst of a dramatic industry-wide downturn, said it might not cut 50 to 100 employees in Montreal, after all. The news follows Swedish-based parent Ericsson LM's decision to lay off 200 workers in San Diego two weeks ago, shifting that division's research-and-development work to Montreal. No new jobs will be created when the work previously done in San Diego - on technology known as "code division multiple access" or CDMA- moves to Montreal, Ericsson Canada spokesman Marie Carrier said. "We're not talking about creating jobs," she said. "We're talking about fulfilling that new mandate with people that we have inside already." She said the new work "secures almost 100 jobs here, so it's good news for the Montreal centre. CDMA is a nice and growing product around the world." In late July, Ericsson Canada said it expected to lay off between 50 and 100 by yearend - 3 to 5 per cent of its local work force. Yesterday, Carrier said no decision has been made on whether layoffs will take place. "It's a long process," she said. "We're making sure we keep the right person for the jobs we have to do now and in the future." Ericsson says it employs 1,657 in Montreal now, the same number it had in late July. The company laid off 170 Montreal workers last year. Ericsson has praised the quality of work at the Montreal facility, which also benefits from low costs thanks to the Canadian dollar, government tax credits and cheaper wages and real-estate expenses. With struggling customers cutting spending or going bankrupt, Ericsson, the world's No. 1 maker of mobile-phone networks, has seen demand for its gear plummet, leaving it with five straight quarterly losses. In July, Ericsson said it would cut its work force by 16,000 worldwide, paring the payroll to 60,000 by next year, down from the 107,000 on staff last year. © Copyright 2002 Montreal Gazette