(Bloomberg Gadfly) -- Ericsson plans to eliminate 3,000 jobs in Sweden as the maker of telecommunications equipment belatedly tries to reduce costs.
Jobs going
3,000
Gadfly has written before about the Swedish company's deep-seated problems before here. After it resisted starting the kind of deep cost-cutting program Nokia and Alcatel undertook several years ago, the company finally embarked on one this year. The company ousted its CEO in July and plans to eliminate 9 billion kronor ($1.05 billion) a year by 2017.
These charts show the horrible scale of Ericsson's problem. First off, Ericsson's payroll has ballooned over the past five years, according to data compiled by Bloomberg.
The second shows how revenue per employee has slid.
And this shows how Ericsson's gross margin has been squeezed. The path to efficiency looks long and tortuous.
This column does not necessarily reflect the opinion of Bloomberg LP and its owners.
To contact the author of this story: Elaine He in London at ehe36@bloomberg.net.
To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net.
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