The Swedish telecommunications equipment manufacturer announces that it will eliminate five thousand jobs to reduce costs. The company expects that telecommunications firms will cut costs this year as the trend of declining supply and demand continues.
Ericsson’s earnings in the fourth quarter of last year fell by 31 percent to 400 million euros, primarily due to restructuring costs related to research, development, and administration. Part of this earnings decline is also attributed to a drop in sales in the mobile phone market where Ericsson operates alongside Sony, which also announces job cuts and factory closures. The Swedish telecommunications giant has also proposed a dividend of 1.85 Swedish kronor for 2008, which is significantly lower compared to the previous year when it was 2.5 kronor. (T.Vi.)
