Page last updated at 09:35 GMT, Wednesday, 21 January 2009

Sweden's Ericsson to slash jobs

Ericsson sponsored yacht
Ericsson expects its customers to cut back spending on telecoms equipment

Swedish telecoms equipment maker Ericsson says it will shed 5,000 jobs to trim costs.

The firm expects telecommunications firms to reduce spending this year as the downturn spreads.

Ericsson said its core business had so far hardly been affected by the global economic slowdown.

"But it would be unreasonable to think that this would be the case also throughout 2009," said chief executive Carl-Henric Svanberg.

Fourth-quarter net profit fell 31% to 3.89bn (0.3bn; $0.5bn; 0.4bn euros) Swedish crowns, partly due to restructuring charges related to research and development and administration.

It also blamed a dramatic drop in the contribution from its mobile phone handset venture, Sony Ericsson.

Revenue rose 23% to 67bn crowns as sales increased worldwide

Ericsson said it proposed a dividend of 1.85 crowns for 2008, down from 2.50 crowns paid out the previous year.

Ericsson announced 4,000 job cuts last year.

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