Ericsson on Tuesday confirmed that it will cut 3,000 jobs in Sweden, with the workforce reduction expected to span production (1,000), R&D (800), and sales and administration and other parts of its operations (1,200) via a combination of voluntary and forced reductions, as well as “other measures such as outsourcing.”
Ericsson said it will make “significant reductions” in operations in Borås and Kumla that are in line with its current production strategy as it looks to consolidate some production sites and work with partners.
Ericsson employs about 16,000 in Sweden, and about 116,000 worldwide.
Ericsson said the move is part of a broader cost and business streamlining program, but said it also intends to recruit about 1,000 R&D positions in Sweden over the next three years, mainly from universities, in order to bulk up in new “technology and customer domains.”
Ericsson’s restructuring is targeting savings of SEK 9 billion (about $1 billion) during 2017.
"Ericsson is going through a large transformation. We continue to have a strong focus on R&D, and since many years, most Ericsson employees work in software development and services, rather than hardware production. The measures are necessary to secure Ericsson's long term competitiveness as well as technology and services leadership,” Ericsson president and CEO Jan Frykhammar said, in a statement.