Ericsson to axe 1500 employees

January 26, 2010 · Filed Under News · Comment

Wireless equipment maker LM Ericsson AB announced on Monday the company’s plans to reduce another 1,500 employees this year after reporting a colossal 92 per cent drop in fourth-quarter profits as mobile operators slashed spending.

Ericsson reported that the company’s net profit in the October-December quarter was USD 43.4 million (314 million kronor). This was down from 3.9 billion kronor in the same quarter one year back. On the other hand the yearly profits dropped 67 per cent to USD 512 million, or 3.7 billion kronor.

For Ericsson, the quarterly sales were down by as much as 13 per cent to USD 8.1 million or 58.3 billion kronor as compared to the figures a year earlier. The sales for 2009 dropped by a per cent USD 28.6 million or 206.5 billion kronor from 208.9 billion kronor.

Tags: Ericsson, job, lay-off

Ericsson profit falls 92%

January 25, 2010 · Filed Under News · Comment

Ericsson AB, the world’s largest maker of wireless networks, has reported a 92 per cent drop in the company’s fourth quarter profit, as the phone companies reduced spending.

Ericsson’s net income dropped to USD 43.4 million or 314 million kronor from 3.89 billion kronor a year earlier, the company said in a statement.

The Stockholm based company was however anticipating a profit of 2.5 billion kronor.

Tags: Ericsson, profit, recession, wireless network

Ericsson to Run Sprint’s Cellphone Network

July 9, 2009 · Filed Under News · Comment

US telecom services provider, Sprint Nextel announced on Thursday that it was seeking to transfer operation of its network to Swedish telecom equipment maker, Ericsson.

Under the seven year agreement, Sprint will be transferring around six thousand of its employees to a subsidiary unit owned by Ericsson which like Sprint’s headquarters is also based in Overland Park, Kansas. The deal which is worth between $4.5 billion to $5 billion is being seen as Sprint’s latest move to cut spending and arrest the decline in the number of its cellphone services subscribers. According to Sprint executives, the amount of money saved by the cost-cutting measure will enable the company to go ahead with its plans of developing new products. Other than that the deal will also free up funds needed to improve the quality and coverage of Sprint’s networks.

The deal reached between Sprint and Ericsson allows Sprint to retain ownership of the telecom services company while the day-t-day tasks like the management of cell towers and services will be taken over by Ericsson. The president of Sprint network operations and wholesale, Steven L Elfman clarified in a conference call with reporters that Sprint still owned its network and was not selling it to Ericsson.

Tags: Ericsson, Sprint Nextel