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Swedish kit maker to reportedly end manufacturing in its home market in line with its cost reduction plan.
Ericsson plans to shut down its remaining manufacturing plants in Sweden, as part of its sweeping cost reduction plan.
This is according to confidential documents seen by local newspaper Svenska Dagbladet (SvD), which reported late on Wednesday that the closure of Ericsson’s facilities in Boras and Kumla will result in the loss of 3,000 jobs. The company has operated a factory in Sweden since 1876.
A source cited in the report also claimed that Ericsson closing its plants is phase one of a long-term plan to shift the company’s operations out of Sweden entirely.
In 2014, Ericsson announced plans to cut annual costs by 9 billion kronor (€949.5 million) by 2017, with half of those savings being generated by a reduction in operating expenses. However, on 19 July this year, Ericsson doubled its operating savings target, and a week later, Ericsson CEO Hans Vestberg resigned.
"These measures mean a reduction of the number of employees worldwide. We have large operations in Sweden which are not excluded," said Ericsson, in a statement on Thursday. "As we always do for any employee reductions, we will handle this on a country-by-country basis and our employees and, where applicable, union representatives will always be informed first."
