Ericsson Announces More Layoffs

The Swedish telecom giant will lay off 7,000 more employees than previously planned.

Swedish telecommunications equipment giant Ericsson AB announced that the company will lay off 7,000 more employees than previously planned, owing to a weak market.

"The ongoing restructuring actions, including announced outsourcing projects, would have brought the headcount down to 54,000 during this year. With the additional actions, headcount will approach 47,000 next year," concludes Carl-Henric Svanberg, President and CEO of Ericsson.

The Stockholm company on Tuesday posted a first-quarter 2003 net loss of 4.3 billion kronor ($518 million), compared with a loss of 2.97 billion kronor (about $358 million) in the same period a year ago.

Sales for the quarter fell 30 percent from the fourth quarter of 2002 as well as from the first quarter of 2002.

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