Ericsson says it will cut about 3,000 jobs in Sweden as part of a cost and efficiency program that it first revealed in 2014. About 1,000 of those positions will be in manufacturing, 800 will be in research and development, and 1,200 will be other areas of operations.
As previously reported by Swedish newspaper SvD Näringsliv, many of the manufacturing job cuts will be occur at factory sites in the cities of Bora and Kumla, as the company plans to consolidate its production sites.
Ericsson noted that its decision to consolidate its manufacturing and have fewer sites globally is due to the adoption of more streamlined production processes over the past decade, which has reduced the time to manufacture a radio by half, as well as the smaller size of production units.
Interestingly, Ericsson also said it intends to add about 1,000 R&D positions, primarily engineers, in the next three years. Those new hires will primarily come from universities. Jan Frykhammar, president and CEO of Ericsson, said that the company will continue to focus on R&D but that many of its employees today work in software development and services as opposed to hardware production.
The remaining 1,200 positions that will be cut will come from operations. The company also said it will reduce the number of consultants in Sweden by 900.
Ericsson’s cost and efficiency program is intended to save the company $1.05 billion by year-end 2017. In July the company announced further actions to reduce costs.