Ericsson resets and terminates – helagotland.se

Ericsson resets and terminates – helagotland.se

Ericsson expects that the cost of research and development of modem this year will amount to 2.6 billion. This cost is expected to drop sharply in the first half of 2015 and then completely disappear. But the decision is justified not only as a saving, but strategically, according to Hans Vestberg.

It will be difficult to succeed with the new modems in the future. Instead, we decided to focus more on the core business, where we are strongest, and there is wireless technology.

The modems that Ericsson manufactures intended for smartphones, but the effort has not yielded the results the group management had hoped for.

That’s fewer and fewer smart phone manufacturers who purchase the modem separately, they buy it together with the processor. And we have no CPU, we have just a modem, said Hans Vestberg.

The decision will affect a total of about 1600 services in 14 countries, including nearly 700 in Sweden. And it will lead to layoffs, according to Vestberg.

Yes, I think absolutely. I have to be honest with it. How many exactly is hard to say.

Most affected in Sweden are today employed in Lund, according to Hans Vestberg, who simultaneously announced a new focus on research and development in radio technology in just Lund. For the 500 people will be recruited.

In addition to the 656 employees in Lund is also affected 150 consultants of the plans, according to Lars-Ake Ekdahl, Swedish Engineers’ president at Ericsson in Lund. Nearly 500 members of the Swedish Engineers.

-Operations formed in August 2013 and it was said to be an effort that would be evaluated after 18 to 24 months. But now it has only been 13 months, so mortified to put down is obviously very shocking. People have reacted with dismay, saying Ekdahl.

Hardware developer Magnus Österholm says that the news is hard for many employees.

It has just set in a while, the uncertainty. But it happened right now was a bit odd, given that we start selling products, he says.

Anders Almgren (S), which is expected to become the new mayors in Lund, believe that the news is a blow to the city:

-Ericsson, together with Tetra Pak and Alfa Laval, is the backbone of the Faculty of Business and industrial movements. Lund is born out of a strong industrial tradition, which also turned into a lot of research, development and technology at the forefront. 700 jobs in what is the lynchpin of the Faculty of business – it is clear that there is a heavy blow.

On Wednesday, the Japanese Sony released the shocking news that losses running amok and that action is needed, especially in the mobile phones business. It can besides Ericsson slips result in further blows to Lund where Sony has the most of the business in Sweden.