InterDigital Inc (IDCC)

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Ericsson Workforce Shrinks



Feb 14, 2003 (Communications Today/PBI Media via COMTEX) -- Ericsson [Nasdaq: ERICY] moved toward its target of cutting another 4,000 jobs this year with word that it lay off 1,200 workers in its information technology units, saying it needs fewer people to support its own computer networks. About 700 of the positions will be cut in Sweden, and 500 in other countries.

The latest layoffs come after the Swedish company trimmed 7,100 jobs from its workforce in the fourth quarter, bringing its total headcount down to 64,600. It expects to have less than 60,000 employees by the end of this year. Ericsson, which reported its ninth consecutive quarterly loss earlier this month, is the No. 1 provider of wireless network equipment, but is struggling to return to profitability. In April, the company will have a new leader of its turnaround efforts. Carl-Henric Svanberg, CEO of lock manufacturer Assa Abloy, will replace CEO Kurt Hellstroem, who has opted to retire in April.

[Copyright 2003 PBI Media, LLC. All rights reserved.]

Communications Today, Vol. 9, No. 30 [Copyright 2003 PBI Media, LLC. All rights reserved.]Copyright 2003 PBI Media, LLC. All rights reserved.

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