The local repercussions of Ericsson’s worldwide restructuring and confirmed job losses are as yet unclear.
More than 11,000 Ericsson employees worldwide will lose their jobs as the Swedish telco streamlines its operations. New Zealand corporate marketing manager Steve Inglis says no announcement has yet been made regarding the New Zealand operation. “We haven’t heard any details yet,” he says, “but New Zealand is likely — I hope — to be less affected than some other countries because of the areas we concentrate on.” Fixed-line services will be hardest hit, globally because those divisions haven’t been performing well. The New Zealand operation is not involved in fixed line. “We reorganised two years ago and thinned down by selling some business units. Whether by luck or good judgement, that reorganisation has turned out to be in line with Ericsson’s latest international restructuring..”
The company blames lower than expected earnings, rapid changes in the communications market and new work methods for the job cuts.