Sweden's Telefonaktiebolaget LM Ericsson plans to cut nearly 14,000 jobs by late 2004, after posting yet another quarterly loss.
Ericsson's workforce of about 61,000 at the end of the first quarter 2003 will shrink to 52,000 by the end of the year and 47,000 by the end of the third quarter of 2004, president and chief executive officer, Carl-Henric Svanberg, said at a press conference to announce the company's quarterly results.
At the end of the first quarter in 2002, the company employed about 107,000 people, a company spokesman said.
Svanberg, who took over the helm of the financially-troubled Swedish provider of wireless equipment and network services, is stepping up efforts to cut costs and return the company to profit.
Ericsson posted a first quarter net loss of $US504 million (as of March 31, the last day of the period being reported) on sales of $US3.88 billion. This compared to a loss of $US449 million on sales of $US5.54 billion for the same period the year before, the company said.
Sony Ericsson Mobile Phones AB, the subsidiary into which Ericsson folded its mobile phone business, shipped 5.4 million units in the first quarter, down 7 per cent compared with the first quarter of 2002, Ericsson said.
The Swedish company's focus on cellular infrastructure backfired after mobile operators in Europe spent billions on acquiring 3G (third-generation) broadband mobile Internet licenses and the global economy weakened.