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Ericsson reports slump in profits, slashes 5,000 jobs

by on21 January 2009

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Blames Sony partnership, restructuring charges

 

Ericsson has posted a 31 percent drop in Q4 net profit and announced it would shed 5,000 workers.

The company says its net profit slumped to $465, a 30 percent decline year-on-year. It claims restructuring charges and a dramatic drop in contributions from its handset division, Sony Ericsson, are to blame. Recently, Sony Ericsson reported a $243 million loss in Q4.

Ericsson says it needs to tighten its belt as the economic crisis continues, and it plans to cut 5,000 jobs our of its 79,000 workforce. CEO Carl-Henric Svanberg warns the global crisis is making it difficult to predict to what extent consumer spending will be affected, and how operators will act.

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