Ericsson cuts 4000 jobs and gloomy 2008

Dismal week for vendor news as the world's largest maker of wireless networks, Ericsson announced a further 4000 job cuts, after the Swedish firm's quarterly earnings fell 42 percent and executives forecasted a flat 2008. The company also pledged a $630 million cut in costs, but said it would quarantine its R&D facilities as it braces for what Ericsson predicts will be sluggish network investment in European and North American markets.

Ericsson shares have fallen nearly 50 percent since cutting sales targets twice in Q4, as the vendor has been hit by wireless operators jointly building wireless networks and sharing base stations. The expected boom in mobile data services--including wireless VoIP--however could turn around the longer term prospects as carriers seek to ensure consistent service quality across their markets.

For more:
- Ericsson Press Release

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