Ericsson to Cut 1,700 More Jobs in Sweden Sep 3, 2003

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Swedish wireless equipment maker LM Ericsson said Wednesday it will cut another 1,700 jobs in Sweden from its work force. The layoffs are part of a previously announced cost-cutting program the phone company hopes will return it to profitability by the end of the year.

Ericsson has lost more than 46 billion kronor (U.S. $5.6 billion) since the start of 2001, but CEO Carl-Hennric Svanberg said the company has seen signs the mobile systems market is finally hitting bottom.

In July, the company posted a $328-million loss for the second quarter, about the same as a year ago, but its loss before one-time items was smaller than expected in a sign that its efforts to cope with slower telecommunications equipment demand are paying off.

Ericsson has been cutting jobs for the past 2 years amid a deep decrease in demand from its telephone-operator customers. It expects to have 47,000 employees next year, down from 107,000 at the start of 2001. The company has also said it intends to be profitable even if its sales do not significantly grow from today's depressed levels.

The job cuts announced Wednesday will affect workers in Stockholm and Goteborg, 295 miles southwest of the capital. (AP)

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