InterDigital Inc (IDCC)

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Ericsson serves layoff notices to 1,200 workers



RELATED SYMBOLS: (ERICD)

STOCKHOLM, Feb 13, 2003 (The Canadian Press via COMTEX) -- Wireless equipment
maker LM Ericsson served layoff notices Thursday to 1,200 workers in its
information technology divisions.

Spokeswoman Aase Lindskog said the need for workers to support computer networks
had been reduced as the overall organization has shrunk amid an industry slump.

``We have gone from 107,000 employees to roughly 64,000 workers and that means
we send fewer e-mails than we did before,'' Lindskog told television network
SVT. ``Since we send fewer e-mails we need fewer servers and therefore we need
fewer people to handle that.''

About 700 workers would be laid off in Sweden and 500 in other countries, she
said, refusing to be more specific.

Ericsson, the world's largest maker of equipment for wireless network, is
struggling to return to profitability after two years of losses. Last week it
said CEO Kurt Hellstroem would retire in April and be replaced by Carl-Henric
Svanberg, the CEO of international lock maker Assa Abloy.


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KEYWORD: STOCKHOLM
SUBJECT CODE: business

(Wall Street)