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> On Monday, the company, which employs more than 105,000 worldwide, announced plans to cut about 1,400 jobs in Sweden. While Ericsson did not disclose which g
by throwaway5959 4y ago
> On Monday, the company, which employs more than 105,000 worldwide, announced plans to cut about 1,400 jobs in Sweden.
While Ericsson did not disclose which geography would be most affected, analysts had predicted that North America would likely be most affected and growing markets such as India the least.
The cost cutting will continue until profits improve.
- deleted 4y ago[deleted]
- InitialLastName 4y agoDo you disagree with the described strategy? If you think a market is relatively saturated (as I assume the US is from a telecom equipment perspective, especially given growing suspicion of foreign suppliers), wouldn't you allocate your limited resources to markets that have room to grow?
- Scoundreller 4y agoI think the suspicion of foreign suppliers is probably to Ericsson’s benefit in the west. It’s more anti-non-NATO rather than anti-foreign. But if Ericsson drops all its US staff, I could see them getting lumped in with the likes of Huawei anyway.
- IdiocyInAction 4y agoIt's actually anti-non-NAFTA, as can be seen in the inflation reduction act.
- Scoundreller 4y agoSo the “Inflation Reduction Act” has clauses that restrict one’s choice of vendors???
- e12e 4y agoProbably not if they end up joining NATO (whenever the west apeses the Turkish dictator).
- deleted 4y ago[deleted]
- trynewideas 4y agoEricsson revenue in SEK: March 2022: 55.06B June 2022: 62.46B Sept. 2022: 68.04B Dec. 2022: 85.98B Dec. 2022: 7% profit margin, 11.36B operating income, 1.6B net change in cash on hand, 50.32B cost of revenue Beat revenue in four consecutive quarters, all while dealing with IPR agreements and DOJ provisions. Sales up YoY and full year. "A dividend for 2022 of SEK 2.70 (2.50) per share will be proposed to the AGM by the Board of Directors." https://www.ericsson.com/en/press-releases/2023/1/ericsson-reports-fourth-quarter-and-full-year-results-2022 https://www.ericsson.com/en/press-releases/2023/1/ericsson-r...
- tiffanyh 4y ago> 7% profit margin [in 2022] A year ago they had 17.3% profit margin, that’s a massive drop that I imagine spurred this decision. https://www.ericsson.com/en/press-releases/2022/1/ericsson-reports-fourth-quarter-and-full-year-results-2021 https://www.ericsson.com/en/press-releases/2022/1/ericsson-r...
- wobblyasp 4y agoOh no, our mythical infinite growth is growing slightly less quickly. Absolutely bananas thinking.
- jimbo9991 4y agoI mean I agree with you in principle but that doesn't change the fact that as a CEO you are in danger of losing your job if margins compress that much and you don't make a show of doing something about it. Keeping margins up is kind of important if you want to be able to invest in new products and markets and survive as a company into the next generation. Edit: I was talking about the comment above me conflating wanting higher margins with belief in infinite economic growth. I wasn't making a statement about the morality of Ericsson layoffs nor do I have any insight on their financials. I was simply observing that margins seem to be a thing that investors care quite a bit about.
- 4y ago
- rightbyte 4y agoEricsson's effort to have a presence in Silicon Valley has always seemed strange to me since they got so much cheaper engineers closer to their HQ. I mean, they don't need VC money. Why be in SF.
- AlotOfReading 4y agoA lot of related companies (Cisco, Juniper, Palo Alto Networks) are based in South Bay. If you want to hire anyone from those companies or do partnerships with them, you should probably have a bay area satellite office despite the costs.
- rightbyte 4y agoYou can have a sales office or whatever. Having a small RnD office not doing the grunt core stuff anyways won't impress anyone.