News

Ericsson to Close Swedish Facility and Lay Off 393 Workers

February 20, 2005 by Jeff Shepard

Ericsson (Sweden) reported that it would close one of its Swedish facilities and lay off 393 workers, citing its development of new technologies. The company will close its production and design facility in Nynaeshamn and move the production to facilities in central Sweden. Of the unit's 463 workers, 70 will be transferred, but the remainder will be laid off.

The decision was announced shortly after the company saw Fitch Ratings raise its debt rating to investment grade. Fitch cited the company's profitability in recent months, coming after two years of declines because its customers cut back on orders for its products. Ericsson engineered a cost-cutting program, shedding thousands of jobs and becoming leaner. Since then, the telecom industry has rekindled and new orders have been coming in.