Implementation of cost and efficiency program in Sweden
- Implementation of the cost and efficiency program in Sweden announced March 11
- Reduction of approximately 2,100 positions in Sweden
- As previously communicated, this will result in additional restructuring charges which, combined with the normal restructuring, will amount to approximately SEK 2.5 b. in Q2, 2015
- Savings related to this activity in Sweden will start to impact results towards the end of 2015
The global cost and efficiency program, announced at Ericsson's (NASDAQ:ERIC) Capital Markets Day on November 13, 2014, is progressing according to plan. The ambition is to achieve savings of approximately SEK 9 b., with full effect during 2017.
As part of the global program, on March 11, 2015, Ericsson announced that 2,200 positions in Sweden, mainly in R&D and Supply, were subject to notice. As the next step of this activity, individuals on different locations in Sweden have been given notice during June. In total, there will be a reduction of approximately 2,100 positions, with some 1,700 employees leaving the company.
For Q2 2015 restructuring costs of approximately SEK 2.5 b. are expected. These estimated costs include normal ongoing restructuring as well as charges related to the cost and efficiency program, this quarter primarily driven by changes in Sweden. Savings related to this specific activity will start to impact results towards the end of 2015.
Progress updates on the program will be included in Ericsson's earnings reports.
NOTES TO EDITORS
Ericsson is the driving force behind the Networked Society - a world leader in communications technology and services. Our long-term relationships with every major telecom operator in the world allow people, business and society to fulfill their potential and create a more sustainable future.
Our services, software and infrastructure - especially in mobility, broadband and the cloud - are enabling the telecom industry and other sectors to do better business, increase efficiency, improve the user experience and capture new opportunities.
With approximately 115,000 professionals and customers in 180 countries, we combine global scale with technology and services leadership. We support networks that connect more than 2.5 billion subscribers. Forty percent of the world's mobile traffic is carried over Ericsson networks. And our investments in research and development ensure that our solutions - and our customers - stay in front.
Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales in 2014 were SEK 228.0 billion (USD 33.1 billion). Ericsson is listed on NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York.
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