Feeds

Ericsson axes 5,000 jobs

Posts worse than expected losses

  • alert
  • submit to reddit

Top three mobile application threats

Mobile phone giant - Ericsson - is to axe a further 5,000 jobs as it struggles to cut costs amid tough trading conditions.

The job losses are on top of the 20,000 announced by Ericsson three months ago and will bring global headcount down to around 65,000 by the end of 2003.

Today the Swedish company disappointed the market with worse than expected pre-tax losses of SEK3.5bn (£240m) for Q2.

Sales for the quarter hit SEK38.5bn (£2.65bn), down from SEK55.5 (£3.8bn) in the same quarter last year.

The company also fleshed out plans for a rights issue to raise SEK30bn (£2.1bn) in new financing for the company.

Said Kurt Hellström, President and CEO of Ericsson: "In light of our lowered market expectations for this year, we have intensified the cost reductions that we started last year and are substantially ahead of schedule.”

Despite feeling the pinch Ericsson remains convinced that there is a profitable future in global wireless telecommunications.

But it admits that as the market is set to contract by 15 per cent this year the demand for mobile systems and phones is expected to remain weak at least well into next year. ®

Related Story

Ericsson axes 20,000 jobs

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.