Ericsson Restructures Activities within Kalmar Unit

July 05, 2005 by Jeff Shepard

Ericsson Power Modules (Sweden) informed its employees that activities at its Kalmar unit will be restructured. Around 130 of a total of 230 people will be affected and the restructuring will be fully implemented by 2007. In the future, activities in Kalmar will focus on the development and industrialization of new products, while production will be mainly concentrated in China.

Of the 130 affected co-workers, 87 are part-time employees. A notice will be put out later this fall. In connection with the notice, negotiations with the unions will start. The unit in Kalmar develops and manufactures power modules for telecommunications equipment. The restructuring is being carried out in order to reduce fixed costs and ensure the competitiveness of the unit.