Ericsson lays off 250 people

Ericsson will cut its workforce by 250 people in Spain because, among other reasons, the delayed deployment of 4G technology has forced the company to make a harsh decision on Wednesday.

The technology group said it needs to adjust its workforce in Spain to respond to the termination of contracts and network modernization in order to remain competitive in the market and long-term profitability.

This adjustment, which affect mainly in the areas of services and projects, responds to a fall project, "derived from the natural completion of various network modernization contract that has not been offset by new deployments
LTE/4G as roll- of this technology has been delayed in Spain on what the company had expected, as well as current business challenges arising from the increasing competition in the sector,"

ST-Ericsson – with the support of both parent companies – will honour all obligations to employees, including those related to restructuring. The proposed changes are subject to negotiations with work councils and employee
representatives as required." according to the press release.

Ericsson said that it was by far a difficult decision. However, he assured the respective users that the process will help ensure the implementation of its strategy and competitiveness and maintain market leadership.

He added that ensures "continuous investment in R & D projects in Spain and today has with its customers."

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Posted by Farasat Ali on Mar 21 2013. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry