Roughly after two weeks, when it was publicized that Ericsson AB has suffered loss in the revenue of wireless carriers, it has now announced that it will lay off 1,500 employees in Sweden.
Ericsson AB, which is considered to be the largest maker of the mobile phone networks across the globe, is going to make a cut of 8.7% in its workforce of Sweden. Ericsson, which itself has announced the news, has also informed that majority of the cuts will take place the networks division.
"We must ensure that we can continue to execute on our strategy to maintain our market leadership, invest in R&D and meet our customers' needs", said Tomas Qvist, who is heading the human resources department in Ericsson at Sweden branch.
As soon as the news hit the leading dailies and broadcasting channels, it was found that the shares of the company have increased by 0.1%. Qvist continued by saying in order to execute their strategies, it is important that they should make cuts on network investments.
In addition, it has been seen that Ericsson has been witnessing a stiff competition with Nokia Siemens Networks and Huawei Technologies Co. In order to give a tough fight to all its competitors, it has been providing a number of extra services, such as network management.