STOCKHOLM, Sweden-Although L.M. Ericsson announced in September it would hire 500 new engineers to accelerate its research into next-generation Internet Protocol-based networks and multimedia technology, it appears the company is also planning a similar number of layoffs.
According to an Associated Press report, Ericsson will lay off about 400 of its 4,600 administrative and sales employees in Sweden. The moves come as Ericsson morphs itself into three customer-oriented business units: Networks, Global Services and Multimedia. The company said it is on track to implement its revamped organizational structure in January.
Ericsson confirmed that it would cut some jobs, but declined to give a specific number. The affected jobs will be offered severance packages or “permanent” consultant positions with Manpower Inc.
In a press release, Ericsson stated, “The offer applies mainly to employees in administrative functions where Manpower has a large need for new resources. The cooperation with Manpower is a unique set-up and a new, positive way to facilitate redundancies.”
Ericsson, the world’s largest infrastructure vendor, said its new Multimedia business unit will consist of its Systems, Enterprise, Mobile Platforms, as well as Consumer and Enterprise Lab units. The unit will address new business opportunities in providing networked TV, music, gaming, video and radio over fixed and mobile networks.
Ericsson said its Networks business unit will support operators’ strategies around cost and convergence, and will include mobile and fixed access, core and transmission networks, as well as next-generation IP networks. Former business units Systems, Access and Broadband networks will be integrated into Networks, along with the Power Modules and Cable units.
The Global Services unit will remain largely unchanged. Ericsson said the unit includes Professional Services as well as Network Rollout, and will continue supporting operators with cost efficiencies and technology evolution.
