STOCKHOLM, Sweden-L.M. Ericsson said it plans to cut thousands of jobs that will reduce it workforce to about 47,000 from its previously projected 54,000 people.
The workforce stood at 61,000 at the end of March after 3,700 job cuts in the quarter.
The job reductions revealed in its first-quarter report reflect a cheerless earnings result marked by a net income loss of $519 million in contrast to a $362 million loss in the fourth quarter.
The Swedish company suffered a 30-percent drop in net sales to $3.1 billion as against $4.4 billion in the previous quarter. This is Ericsson’s 10th straight quarterly loss.
The supplier’s operating income was $421.4 million.
“The macroeconomic environment has become more uncertain with weaker short-term demand; further actions are therefore needed,” said Carl-Henric Svanberg, president and chief executive officer of the company. “We are heading in the right direction but a lot more can be done to simplify our way of working and further reduce costs.”
