Tuesday, June 14, 2016

Ericsson: Action program according to plan – Business World

Ericsson is preparing savings of 10 billion. Daytime running for around 3000 to 4000 employees waiting for the summer, writes SvD on Monday, referring to the sources. These data do not Ericsson comment but the company has begun to take additional measures confirmed.

“As you know, we comment not on rumors or speculation. We communicated a cost and efficiency program in 2014 with the aim to achieve annual cost savings of SEK 9 billion in 2017. the program is progressing according to plan, but it is still not finalized says Karin Hall Town at Ericsson’s press office in a statement to the SIX on Tuesday.

“in addition to this we wrote in our quarterly report for the first quarter of 2016 we had begun to take additional measures beyond the 9 billion in cost and efficiency program. We adapt our operations to the prevailing project volumes in mobile broadband, which primarily affects service delivery, “she notes further.

” In parallel with this, which we announced on April 21, we implement structural changes to increase the execution rate of our strategy to further drive efficiency and growth of the company “, says Karin Hall Town on for SIX.

in the Group management shall, according to SvD is a perception that the measures are not enough. more and far more drastic measures should therefore discussed.

the current goal of a profit improvement of SEK 9 billion compared to 2014 is under threat because Ericsson’s sales go back.

Anyone who has a great understanding of the issue and try to push the issue in Group management is Ericsson CFO Jan Frykhammar, according to SvD.

According to information from within Ericsson, a large number of employees have to apply for their jobs. This could be a first step to identify those who may have to leave the company.

Ericsson CEO Hans Vestberg will according to the newspaper’s sources have previously been skeptical of large cost programs that go out of their employees. Instead, he should have advocated that the company must invest and grow. Even Chairman Leif Johansson, according to people familiar with Ericsson has been hesitant to severe staff cuts.

Ericsson released its report for the second quarter on 19 July.

Speculation in the market in recent weeks, claims that the company will find it difficult to reach analysts’ profit expectations.


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