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Ericsson to lay off thousands of its employees

Stockholm: According to a report, telecoms equipment maker Ericsson is planning to lay off thousands of its employees as a cost cutting measure. After quarterly profit and sales missed expectations in April, Ericsson said slower network spending in Europe and Latin America would require further cost cuts, but it not say how big those cuts would be.

With most of the latest generation of networks already built, especially in developed markets, Ericsson, the leading player in mobile infrastructure, has been struggling to find growth for that part of its business. Source said Ericsson was planning to give notice to between 3,000 and 4,000 staff this summer, and that thousands more may have to leave the company later.

Ericsson said in April it was on track to reach a promised 9 billion crowns in annual savings by 2017 compared with 2014 levels. Its shares are down 26 percent year to date, making them the worst performer in the STOXX Europe 600 Technology Index , prompting investor concern about management’s ability to safeguard earnings.