Thousands lose their job as Ericsson pulls out of Sweden

 
Thousands lose their job as Ericsson pulls out of Sweden
Ericsson is about to shut down all production in Sweden, writes the Swedish newspaper Svenska Dagbladet on Wednesday. The newspaper has seen an internal confidential report.

"We end a 140-year-old manufacturing era, which represents the biggest cut of employees in Sweden ever," it says in the Ericsson report.

The telecom giant has currently 800 employees at its plant in Borås and 400 in Kumla. Both factories will be closed down and a further 600 posts will disappear in connection with the closures.

In addition, the company cuts down more than 1,000 jobs in research and development. Exactly how many jobs that will disappear from Ericsson is not clear in the report, but SvD estimates, based on the wording of it, that it is approximately 4,000.

The reason given for the closures is that Ericsson needs to save money. SEK 3 billion must be saved, most of it in Sweden.

Ericsson has a total of over 116,000 employees worldwide. Just over one-eighth of those, 15,000 are working in Sweden. Six years ago, the company had 20,000 employees in Sweden.

A source said to be "central in the negotiations between the employer and employees," predicts that the telecom giant is about to leave Sweden altogether.

- This plan would kill Ericsson, and would be a first step towards phasing out the whole of Ericsson's operations in Sweden, said the source to SvD.

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