Ericsson Restructuring Costs Seen Higher, No Further Swedish Job Cuts Expected
December 08 2016 - 03:42AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Ericsson AB's (ERIC) said Thursday that restructuring
costs will be higher than previously expected this year as its
efficiency program gathers pace in Sweden, but no further job cuts
are planned beyond those already announced.
The Swedish maker of telecom-network equipment has been racing
to cut costs in the face of intensifying competition from Chinese
rivals and weak demand for its specialty wireless products,
prompting the company to cut 3,000 Swedish jobs in an overhaul
announced in October.
"The reductions in Sweden are progressing ahead of plan,
resulting in an increase in estimated restructuring costs for 2016
of 5.5 billion-6.5 billion Swedish kronor ($606.3 million-$716.5
million), compared to the previously communicated estimate of SEK4
billion-SEK5 billion," it said.
As a result, restructuring charges for 2017 are expected to
decrease somewhat, further details of which will be announced in
the company's fourth-quarter report in January, it said.
Ericsson is betting on the development of faster wireless
networks, called 5G, and software-based services such as the
so-called Internet of Things and cloud computing. Over the coming
three years, the company plans to recruit about 1,000 people in
research and development in Sweden to bring in new competence in
new technologies.
-Write to Dominic Chopping at dominic.chopping@wsj.com; Twitter:
@domchopping @WSJNordics
(END) Dow Jones Newswires
December 08, 2016 03:27 ET (08:27 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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