Feeds

Ericsson ups jobs cull to 6,500

Profits plunge, competition rises

High performance access to file storage

Ericsson will be laying off another 1500 people following a quarter that saw net income down to less than a fifth of last year's.

In the last three months of 2009 Ericsson's net income was 725m Swedish kronor (£62.5m), on sales of 58bn kroner, compared to the 4bn kroner the company brought in during the same period of 2008, on sales of 67bn kroner.

The figures prompted the company to announce it will be laying off a total of 6,500 people as part of its program of cost-saving - up from the 5,000 announced in January last year.

The drop in revenue can, in part, be attributed to network operators holding back on investments during the financial squeeze. But competition from Huawei is also significant - Huawei has been winning a lot of infrastructure deployments around Europe and the world, putting pressure on the small club of existing suppliers.

On Friday the company's joint venture with Sony announced things were equally bleak in the handset world, where sales for the tail of 2009 were more than 40 per cent down on 2009, with the average price per handset falling by a Euro to €120.

Ericsson has spent the last 12 months cutting costs, and the company reckons it's on track to achieve around 15bn kroner in annual savings, though it's going to have to spend another 14bn kroner to get there.

Pressure from America, in the form of Apple and Google, is eating away at the more profitable end of the handset market; while pressure from China, in the form of Huawei, is snatching infrastructure deployments that should be funding the company's recovery. None of this is good news while the still-unstable economy makes every penny harder to pick up. ®

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Nokia offers 'voluntary retirement' to 6,000+ Indian employees
India's 'predictability and stability' cited as mobe-maker's tax payment deadline nears
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
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Adrian Mole author Sue Townsend dies at 68
RIP Blighty's best-selling author of the 1980s
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Analysts: Bright future for smartphones, tablets, wearables
There's plenty of good money to be made if you stay out of the PC market
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
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.
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.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.