The Swedish telecom carrier Ericsson announced, on February 1, 2008, that, after a disappointing third trimester and a 16% decrease in profits in 2007, the company needs to save 4 billion crowns (425 million euros). This will mostly go through letting go of its 1.000 Swedish employees. However, more serious staff cutbacks are expected in other countries - about 3.000 job cuts. (Ref. 080104)
According to the management, most job cuts would be done through voluntary leaves, a common practice at Ericsson. Usually, these programmes aim at encouraging, through bonuses, employees with more than three years’ seniority to leave to recruit young people. A programme of this type, which also aimed at cutting 1.000 jobs, was set up in the spring of 2006 to enable to recruit the young people Ericsson needed to renew its teams. Back then, it was addressed to all employees between 35 and 50 with
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