Telecoms equipment maker Ericsson plans to end manufacturing in Sweden with the loss of around 3,000 jobs, Swedish newspaper Svenska Dagbladet reported late Wednesday.
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The Swedish company is planning to shut down all of its remaining manufacturing within the Network products business unit in Sweden.
“It’s absolutely not certain they will be closed”, Norlander said. “We have large operations in Sweden which are not excluded”, said Ericsson, in a statement on Thursday.
“Our employees and, where applicable, union representatives will always be informed first”. There may also be job cuts within other areas of networks products, such as research and development, which would bring the total number of jobs affected to about 3,000, Svenska Dagbladet said. That program is meant to save the company $1.05 billion by year-end 2017. However, on 19 July this year, Ericsson doubled its operating savings target, and a week later, Ericsson CEO Hans Vestberg resigned.
Shares of Ericsson gained 0.9 percent to 58.55 kronor at 9:38 a.m.in Stockholm.
According to the daily, Ericsson plans to close its network product plants in Borås and Kumla, which would result in almost 3,000 jobs being slashed. The report implies savings twice those of the previous year, which came with some 1,500 lost job opportunities.
The company named former finance chief and executive vice president Jan Frykhammar as interim chief executive until a replacement is found. Carl Mellander, who was vice president and group treasurer, was made acting finance chief to take over from Frykhammar.
Fierce competition and slowing global demand forced the company to step up cost cutting earlier this year.
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