June 24, 2015, 11:00 (CEST) Download:
Implementation of the cost and efficiency program in Sweden announced March 11
Reduction of approximately 2,100 positions in Sweden
As previously communicated, this will result in additional restructuring charges which, combined with the normal restructuring, will amount to approximately SEK 2.5 b. in Q2, 2015
Savings related to this activity in Sweden will start to impact results towards the end of 2015
The global cost and efficiency program, announced at Ericsson's (NASDAQ:ERIC) Capital Markets Day on November 13, 2014, is progressing according to plan. The ambition is to achieve savings of approximately SEK 9 b., with full effect during 2017.
As part of the global program, on March 11, 2015, Ericsson announced that 2,200 positions in Sweden, mainly in R&D and Supply, were subject to notice. As the next step of this activity, individuals on different locations in Sweden have been given notice during June. In total, there will be a reduction of approximately 2,100 positions, with some 1,700 employees leaving the company.
For Q2 2015 restructuring costs of approximately SEK 2.5 b. are expected. These estimated costs include normal ongoing restructuring as well as charges related to the cost and efficiency program, this quarter primarily driven by changes in Sweden. Savings related to this specific activity will start to impact results towards the end of 2015.
Progress updates on the program will be included in Ericsson's earnings reports.
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