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Ericsson to slash about 3,000 jobs - up to 175 in Finland

In a bid to reduce costs and to boost efficiency, Swedish telecoms giant Ericsson confirmed on Tuesday that it plans to cut some 3,000 jobs globally - a move that will also affect up to 175 workers in Finland.

Tummia pilviä kerääntyy Ericssonin logon ylle.
Ericsson. File photo. Image: Jessica Gow / EPA

Some 175 Ericsson employees in Finland will be affected by the employer-employee negotiations that the Swedish telecom company announced it was starting on Tuesday.

The company said that it plans to reduce up to 3,000 positions globally in production, research and development and sales and administration. Most of the personnel cuts will be made in Sweden.

In a press release issued on Tuesday, Ericsson said that dismissals will be carried out using a combination of voluntary and forced reductions, as well as other measures, such as outsourcing.

Altogether some one thousand of the affected employees work in Ericsson's production unit, about 800 in research and development and around 1,200 in other departments.

Most of the Ericsson employees based in Finland that will be affected - some 135 of them - work at Ericsson's plant in Kirkkonummi; the remainder work in Oulu.

Ericsson's President and CEO Jan Frykhammar said the company is going through "a major transformation."

"We continue to have a strong focus on R&D, and for many years now already, most of Ericsson's employees work in software development and services, rather than hardware production. The measures are necessary to secure Ericsson's long-term competitiveness, as well as technology and services leadership."

Ericsson said it plans to recruit about one thousand R&D positions in Sweden in the next three years - mainly from universities - to support the company's competence buildup in new technology and customer domains.

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