Feeds

Ericsson sharpens axe - again

Another 5000 jobs go as mobile business flattens

The Essential Guide to IT Transformation

Cellular-infrastructure manufacturer Ericsson will lay off 5,000 in a bid to cut costs, ahead of the expected reduction in spending from telcos over the next few years.

Ericsson announced 4,000 layoffs at the tail end of last year, but said back in November that it expected sales to be flattish, and as the largest manufacturer of wireless networks the company expects to be hit hard by a slowdown in network expansion. The move will cost the company 7bn kronor (£600m), but should save more than SEK10bn, by the end of 2010.

During the last three months of 2008 net income fell by 31 per cent, to SEK3.89bn compared to the same period in 2007, despite sales up 23 per cent to SEK67bn. Losses by the mobile handset division - Sony Ericsson - combined with SEK2.3bn kronor spent on trimming jobs, combined to reduce earnings and prompted a proposed dividend of SEK1.85 kronor - 74 per cent of last year's divvy.

Sony Ericsson used to be a profit centre for the company, but last week reported losses of €187m for the last quarter of 2008, and stated that it was unlikely to make money in the first half of 2009.

It's not all bad news though - the collapse of Nortel Networks will mean less companies competing for contracts, depending of course on what becomes of Nortel. ®

The Essential Guide to IT Transformation

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.