Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Ericsson, global provider of telecommunications equipment and services, has decided to let go 318 employees in Hudiksvall and 36 in Stockholm. The job reductions are due to a declining demand for telecom cables.
As the market for copper cable has declined and the market for fiber cable has grown over the last years, the production has shifted towards Asia, where the majority of the business volumes for fiber cable is found. In Europe there is more production than demand for both copper and fiber cables. Ericsson's production of telecom cables is small from a global perspective and constitutes a small market share. The production has not been operating in full capacity for a long time and has struggled with profitability.
Union negotiations have started and are expected to be completed during the third quarter 2013. As of May 2013, there is no information about when the employment adjustments will start taking effect or when they will be implemented.
Ericsson employs over 100,000 employees worldwide and is one of the largest companies in Sweden.
For information on earlier announcements of job reductions at Ericsson see Ericsson-SE2012a, Ericsson-SE2012b, Ericsson-SE2010, Ericsson-SE2009a, Ericsson-WO2009, Ericsson-SE2009b, Ericsson-WO2009, Ericsson-SE2008 and Ericsson-SE2007.
Eurofound (2013), Ericsson, Internal restructuring in Sweden, factsheet number 75401, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/75401.