26 Jan 2010

More jobs to be cut at Ericsson

10:59 am on 26 January 2010

Swedish telecommunications firm, Ericsson is to cut an extra 1500 jobs after a sharp fall in profit.

The wireless equipment maker's profit fell 92% to $US43 million in the December quarter compared to the same period a year ago.

Sales fell 13% as global spending on telecoms equipment continued to fall, and as Ericsson faced increased competition from Huawei of China.

It also paid $US600 million in restructuring costs.

The 1500 jobs are in addition to 5000 positions cut last year.

Chief executive Hans Vestberg says the challenge for the company now is to keep making enough money as it develops new business opportunities.

He says the company is not issuing an earnings forecast until later this year.

Ericsson's shares slumped 1%.