Ericsson on Wednesday revealed that it has begun giving notice to staff facing redundancy as part of its 9 billion-kronor (€987 million) cost-cutting programme.
In the past few weeks approximately 2,100 positions have been eliminated at the vendor’s Swedish R&D and supply operations. Around 1,700 staff will not be assigned new roles and will leave the company.
Ericsson confirmed in March that it will cut approximately 2,200 jobs in total; the redundancies are also expected to affect its sales, general and administration operations, and the number of external consultants on its books.
Ericsson said it expects to recognise SEK2.5 billion of restructuring costs in the second quarter of 2015 related in part to the redundancies.
"Savings related to this specific activity will start to impact results towards the end of 2015," said Ericsson, in a state ment.
The company has set a target of reducing expenses by SEK9 billion by 2017. It is expected to generate annual restructuring costs of between SEK3 billion and SEK4 billion for the programme’s duration.
Further updates will be included in Ericsson’s earnings reports. It is due to report second quarter results on 17 July.
