Ericsson Expected To Lay Off Thousands This Summer

Telecom gear maker Telefonaktiebolaget LM Ericsson ERIC plans to lay off thousands of employees this summer and mulling large, additional cost cuts amid slowing markets, Reuters reported citing newspaper Svenska Dagbladet (SvD).

Reuters recalled that following the profit and sales miss in April, Ericsson said slower network spending in Europe and Latin America would require further cost cuts, but it didn't say how big those cuts would be.

SvD 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 declined to comment on the report, but reaffirmed it was on track to reach previously announced annual cost savings of 9 billion crowns by 2017 compared with 2014 levels.

Reuters, citing the company's latest report, says Ericsson employed 115,300 at the end of the first quarter, down from roughly 116,300 at the end of last year.

At time of writing, shares of Ericsson fell 1.23 percent to $7.25.