Ericsson reports 31% profit drop, will cut 5000 jobs

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Ericsson reports 31% profit drop, will cut 5000 jobs

Stockholm (Sweden) – LM Ericsson, a Swedish-based wireless equipment maker, reported a 31% decline in profits for Q4’2008. Citing restructuring charges and weaker handset sales, the company said it will cut 5,000 jobs. Their revenues dropped from 5.6 billion kronar to 3.9 billion, a loss of US$464 million.

Sony Ericsson also reported quarterly earnings last Friday. They recorded significant Q4 losses (see PDF) with 24.2 million units shipped, down from 25.7 million in Q3’08 and 30.8 million in Q4’2007. Sales were 2.9 billion Euros compared to 2.8 billion Euros in Q3’08 and 3.8 billion Euros in Q4’2007. Sony Ericsson announced they had been working on reducing operating expenses by 180 million Euros annually, the full effects of which will be seen in 2009.

See the original AP Digital article republished on Yahoo News on LM Ericsson.