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[THECANADIEN]

Ericsson to cut 2,100 jobs and close two UK plants
By Maija Pesola
Published: March 27 2001 07:34GMT | Last Updated: March 27 2001 08:04GMT



Ericsson, the Swedish telecommunications equipment maker, on Tuesday said it would cut 2,100 more jobs in Sweden as part of a streamlining effort which it hopes will reduce costs by SKr20bn ($2bn) annually.

The company will also terminate production at its plants at Carlton and Scunthorpe in the UK, where 1,200 people are employed, by the third quarter of the year. Ericsson said it was looking for a buyer for the plants.

The 2,100 job cuts in Sweden include 1,500 redundancies at Ericsson`s Kumla manufacturing facility, and 600 redundances at Linköping.

In addition, Ericsson said it would significantly reduce its number of consultants significantly, in some cases more than 50 per cent.

It has imposed a hiring freeze across the company.

The news comes a day ahead of Ericsson`s annual general meeting, which is expected to be turbulent. The company has faced a deluge of criticism since it warned this month that it was heading for losses of SKr400m to SKr500m in the first quarter, having predicted a break-even result as recently as January.

Ericsson had already announced 600 job cuts in January at its Linköping and Lund production facilities. The redundancies came as part of plans to outsource production of handsets to Flextronics, after the unit made losses of SKr24bn last year. The outsourcing also saw the transfer of 4,200 staff to Flextronics.

[Mafiabroker]

hallo canadian,

hört sich übel an .die lage ist ernster als die leute es wahr haben wollen.


grüsse

Mafiabroker

[konns]

Laut FAZ kursieren sogar Zahlen von 10.000 bis 25.000, die den Konzern verlassen müssen.