Ericsson to axe 2,200 jobs in Sweden in massive cost-cutting drive

Communications technology firm Ericsson will slash 2,200 jobs in its native offices.

The Swedish business announced in November that it was embarking on a massive cost-cutting drive as it looks to save around nine billion Swedish crowns (£697m, $1bn) per annum, coming into full effect from 2017.

The majority of the cuts will come from its research and development (R&D) divisions – which employ around 26,000 people globally.

"While we continue to have a very high pace of investments in R&D, there are now possibilities to realise efficiency gains or cost reductions," chief financial officer Jan Frykhammar is quoted by Reuters as saying.

The company said in a statement that there would also be redundancies in its sales, general and administration divisions.

Almost half the job losses will come from its Stockholm headquarters while its Katrineholm operation will be shut.

When 2014 came to a close, Ericsson employed around 118,000 people worldwide – 17,580 of which are based in its homeland.