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Ericsson serves layoff notices to 580 workers



RELATED SYMBOLS: (ERICD)

STOCKHOLM, Sweden, Feb 11, 2003 (AP WorldStream via COMTEX) -- Wireless
equipment maker LM Ericsson issued formal layoff notices Tuesday to 580 workers
in its microelectronics unit, which was sold last summer.

The layoffs had been expected since last June when Ericsson announced the 300
million euro (US$320 million) deal with Germany's Infineon Technologies AG.

The plant in Kista, a suburb of Stockholm, makes chips for mobile phones and for
base stations for wireless networks.

Production continued after the sale, but is gradually being transferred to
Infineon's facilities around the world, Ericsson spokeswoman Aase Lindskog said.

The 580 employees were served notices Tuesday, but some would likely continue
working into next year, she said.

Infineon took 700 employees, as well as products, research and development and
manufacturing activities, in the deal.

Ericsson, which is struggling to return to profitability after two years of
losses, last week named a new chief executive. Carl-Henric Svanberg, the CEO of
international lock maker Assa Abloy, will replace retiring CEO Kurt Hellstroem
in April.

---

On the Net:

http://www.ericsson.com



Copyright 2003 Associated Press, All rights reserved

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KEYWORD: STOCKHOLM, Sweden
(kr-mpm)

(Wall Street)