Ericsson cuts 8.7 per cent of Swedish workforce

Sony Ericsson phone

flickr- Sham Hardy

Mobile phone company Ericsson AB (ERICB) is to eliminate 1,550 positions in its home base Sweden. 

The world's largest maker of mobile phone networks thereby reduces its Swedish workforce by 8.7 per cent. 

According to the head of Ericsson's human resources in Sweden Tomas Qvist, the layoffs are part of a plan to maintain the company's leading market position. "To secure this", Qvist said, "we need to focus on reducing cost, driving commercial excellence and operational effectiveness". 

Ericsson announced the cuts two weeks after disclosing a slump in profit. Faced with smaller network investments by wireless carriers, the Stockholm-based company is hoping to offset losses by boosting its network management and maintenance sales.