Ericsson Cutting 3,900 Jobs

(RTTNews) - In a desperate cost-cutting measure, Ericsson AB plans to shed around 3900 jobs in Sweden. Entry of new technologies and reduced demand for network equipment have been troubling the Swedish firm.

The new job cut is expected to clear off most of its production facilities in Sweden as it plans to reduce around 1000 positions. R&D division will witness 800 job cuts. 1200 people working in sales and administration will lose their jobs, while 900 consultants also have to find new positions elsewhere.

Earlier in 2014, the company had announced a broad plan to save at least $1.1 billion through cost cutting. Two months ago, it had sent out its Chief Executive Hans Vestberg in view of declining revenue and profit.

Interim CEO Jan Frykhammar said, "The measures are necessary to secure Ericsson's long term competitiveness as well as technology and services leadership."

As part of a technology shift in the coming years, the company reportedly have plans to recruit around 1000 people to its Research and Development division.