2,200 positions cut in Sweden, now 71 cuts in Ireland
After announcing plans to cut 2,200 jobs in Sweden earlier this month, networking/software company Ericsson last week told staff at its Dublin facility that 71 more cuts would impact its local workforce.
Ericsson has about 1,500 employees in Ireland and reportedly hopes to achieve the reductions through attrition, according to The Irish Times.
Traoloch Collins, managing director of Ericsson Ireland, said the reductions are part of an “ongoing transformation as an ICT company.”
“We remain committed to Ireland as a strategic location for research and development and professional services,” Collins said.
“We employ over 1,500 people in Ireland,” he said. “We expect to make further investments in these areas over the coming years in both Athlon and Dublin. Our priority today is our employees affected by the announcement.”
Last May, Ericsson execs announced plans to add 120 positions in Athlon, where it operates another facility.
The job cuts in Sweden will come in the areas of supply and research and development.
At the end of 2013, Ericsson had 25,300 R&D employees, but the company’s R&D priorities are shifting as it focuses more on network software and media. Ericsson shed its chip and mobile device businesses several years ago, meaning that its hardware research needs have changed significantly over the years.
Worldwide, Ericsson employs some 115,000 people with 17,580 of those in Sweden.
Ericsson is in the process of establishing three global information and communication technology centers worldwide, two of which are in Sweden and the other in Montreal. Ericsson is working to develop a common test and development strategy and methodology for R&D at each of these centers as part of a series of efficiency initiatives announced late last year.
In addition to reducing headcount, Ericsson said it wants to drive efficiency by cutting external costs. Activities in 2015 will mainly target structural improvements in R&D, service delivery and supply. The company said its programs to cut costs and improve efficiencies will continue through 2017.
