Ericsson cuts production in France, Sweden

Ericsson has announced a string of restructuring initiatives that will affect a total of around 1500 staff in France and Sweden, as the telecommunications equipment vendor continues to outsource manufacturing of non-core products.

Ericsson said it has reached an agreement to sell its fixed-line switch production units in Sweden and France to Solectron, a contract manufacturer focusing on the electronics sector. The sale of the plants was part of a previously announced restructuring program, the company said.

The existing Ericsson employees respectively, will be offered employment by Solectron, Ericsson said.

At the same time, another 100 Ericsson employees will be taken over by Proffice, an industrial staffing company, in a career and development program, Ericsson said.

In parallel with these changes, Ericsson said it is looking to hire about 100 staff with qualifications in IP (internet protocol) in Katrineholm, where the company plans to create a supply center for Internet-related products.

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