RTE News has learned that Ericsson is to seek 45 redundancies from its operation in Clonskeagh in Dublin. Staff were told yesterday that the company would offer voluntary terms until October 23 after which it would seek to implement compulsory redundancies.
Ericsson has cut 350 staff from its operations in Athlone and Dublin over the past two years. It currently employs approximately 1,500 people in Ireland.
The Swedish telecoms giant, reporting a widening loss and lower sales in the third quarter, today said the industry outlook remains uncertain and the market will only stabilise in 2003.
Ericsson lost 5.6 billion Swedish kroner (€614 million) at the net level, against 4.3 million in the third quarter of 2001, a result worse than anticipated by financial analysts. Sales dropped 30%.
The results are pro forma and exclude a number of exceptional items, notably a 4.2 billion kroner charge for Ericsson's restructuring drive, which is to cost a total of 17.5 billion.
As part of the company shake-up, Ericsson expects to reduce its workforce to below 60,000 by the end of next year, from 71,700 at present.
'In the near-term the industry outlook continues to be uncertain. Many operators pursue more gradual 3G rollouts or target fewer markets,' chief executive officer Kurt Hellstroem said in a statement.
However, the mobile telecommunications market is expected to decline at a less dramatic pace in 2003 than this year, 'and will begin to stabilise at a lower level', he said. Ericsson said it still expects to return to profitability 'at some point' in 2003.
