Next step in global Cost and Efficiency program
(Thomson Reuters ONE) -
* Cost and efficiency program announced in November, 2014, now moving into
next phase with activities worldwide
* 2015 activities will mainly target structural improvements in R&D, Service
Delivery and Supply globally
* Includes both headcount reductions as well as savings in external costs
across operations globally
Ericsson continues to execute on strategy to excel in core areas: Radio, Core
and Transmission and Telecom Services, to fund growth in the targeted areas: IP
networks, Cloud, TV & Media, OSS & BSS and Industry & Society. The pace of
change is increasing in the industry, accelerated further by industries
converging. The pace of change is also accelerating in Ericsson (NASDAQ:ERIC) as
the company transforms to ensure leadership in the ICT industry.
As announced at Ericsson's Capital Markets Day on November 13, 2014, accelerated
efficiency measures will start in 2015 and run through 2017 globally. In 2015,
the cost and efficiency program activities will mainly target structural
improvements in R&D, Service Delivery and Supply globally to secure highly
efficient, effective and industry-leading operations to support growth. The
establishment of the three global ICT centers with a common test and development
strategy and methodology for R&D is part of the long-term structural
improvements and efficiencies.
The program includes both headcount reductions as well as savings in external
costs across the company's operations globally. Today, Ericsson is announcing
that 2,200 positions in Sweden, mainly in R&D and Supply, are subject to notice.
There will also be efficiencies in sales, general and administration, as well as
reductions in external cost, for example related to the number of consultants
and consolidation of IT portfolio.
The program targets savings of approximately SEK 9 b. with full effect during
2017. This is a long-term initiative with an ambition to reduce operating
expenses and cost of sales across all Ericsson's operations, units and functions
already in 2015 in order to fund growth in targeted growth areas. As previously
communicated, annual restructuring normally generates charges of approximately
SEK 2 b. In addition, the cost and efficiency program will generate
approximately SEK 3-4 b. in restructuring charges in 2015-2017.
Progress updates on the program will be included in Ericsson's earnings reports.
NOTES TO EDITORS
Download high-resolution photos and broadcast-quality video at
www.ericsson.com/press
Ericsson is the driving force behind the Networked Society - a world leader in
communications technology and services. Our long-term relationships with every
major telecom operator in the world allow people, business and society to
fulfill their potential and create a more sustainable future.
Our services, software and infrastructure - especially in mobility, broadband
and the cloud - are enabling the telecom industry and other sectors to do better
business, increase efficiency, improve the user experience and capture new
opportunities.
With approximately 115,000 professionals and customers in 180 countries, we
combine global scale with technology and services leadership. We support
networks that connect more than 2.5 billion subscribers. Forty percent of the
world's mobile traffic is carried over Ericsson networks. And our investments in
research and development ensure that our solutions - and our customers - stay in
front.
Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales
in 2014 were SEK 228.0 billion (USD 33.1 billion). Ericsson is listed on NASDAQ
OMX stock exchange in Stockholm and the NASDAQ in New York.
www.ericsson.com
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FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations(at)ericsson.com
Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail: investor.relations(at)ericsson.com
Next step in global Cost and Efficiency program :
http://hugin.info/1061/R/1901885/676141.pdf
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Source: Ericsson via GlobeNewswire
[HUG#1901885]
Unternehmensinformation / Kurzprofil:
Datum: 11.03.2015 - 10:15 Uhr
Sprache: Deutsch
News-ID 377620
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