Ericsson to cut hundreds of employees, contractors

Permanent and contractor cutbacks to come over the next six months, but aren’t a result of economic slump, company says

Ericsson Australia and New Zealand will cull approximately 300 employees and contractors across the entire business over the next six months, it announced this week.

The company said the cutbacks are aimed at "improving efficiency and competitiveness" and form the local implementation of a global cost adjustment program involving a range of business and operational processes announced in February this year.

Some 200-odd Ericsson contractors will also get the chop over the same timeframe, in line with the completion of various project commitments.

Ericsson’s spokesperson told ARN the cutbacks weren’t a result of the recent economic slump, and will affect staff at all levels including members of the executive management team. The company said it is projecting a strong year in Australian telecommunications for 2009 despite both Gartner and IDC warning that mobile phone sales and shipments will slow next year.

All employees that are made redundant will receive full entitlements with “above market” terms promised, as well as outplacement, financial planning and counselling support.

Ericsson employs around 1660 permanent employees and about 405 people provided through contracting firms locally.

Worldwide, Ericsson employs 77,350 people, and announced third quarter financial results in October with an operating profit of 5.7 billion Swedish Krona ($US772.5 million) and sales growth of 13 per cent.

Recently, Ericsson made local news with its demonstration of wireless broadband technology that can transmit data at 160Mbps.

The company also has a research project in Sweden, dubbed Tower Tube, that was recently equipped with built-in support for wind power in a bid to help operators go green and expand mobile networks to places where electricity isn’t available.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags GartnerIDCEricsson

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Essentials

James Cook University - Master of Data Science Online Course

Learn more >

Mobile

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?