Ericsson To Cut 300 Jobs In Spain

Swedish telecoms elephantine Ericsson will slash complete 300 jobs successful Spain (about 13 per cent of its workforce) this July arsenic portion of a sweeping European reorganisation.

The move comes conscionable a twelvemonth aft nan company’s Madrid, Málaga and Barcelona operations avoided world layoffs astatine its Stockholm HQ.

The cuts will impact roles crossed Ericsson Spain’s 2,260-strong team, which includes complete 800 R&D positions distributed across:

• Madrid (600 staff)
• Málaga (200 staff)
• Barcelona (30 staff)

These changes travel Ericsson’s determination to trim its world business units from 7 to conscionable four, prompting soul plagiarism and domiciled elimination. The institution admitted that nan restructuring “will create operational efficiencies, which whitethorn mean duplicating immoderate functions aliases making activity easier, which will mean eliminating immoderate functions” (Cited by elEconomista.es.)

Last year, Ericsson trim 8,500 jobs globally owed to a slump successful nan mobile web instrumentality market, 1200 of which were successful Stockholm, yet Spain was mostly untouched until now.

The institution had antecedently described its Spanish subsidiary arsenic “strategic,” acknowledgment to its adjacent proximity to decision-making astatine telecom giants for illustration Telefónica, Vodafone, and Orange. However, those relationships person shifted owed to Orange’s merger pinch MásMóvil and Vodafone’s acquisition by Zegona.

In June, Ericsson merged its European, Middle Eastern and African operations into a azygous EMEA region, dissolving its erstwhile MELA (Europe and Latin America) structure. France’s Christian Leon now oversees nan European operations, pinch Ericsson Spain CEO Diego Martínez reporting straight to him.

Despite nan looming layoffs, Ericsson Spain’s 2024 financial results show growth:

• €25.8 cardinal successful profit (+11 per cent vs. 2023)
• €538.1 cardinal successful income (+8.2 per cent)

Personnel costs deed astir €250 million, 16.8 per cent higher than nan twelvemonth before. Meanwhile:

• Director salaries dropped by 17.5 per cent to €783,000
• Senior guidance received €2.6 million, nan aforesaid arsenic 2023, divided betwixt 14 executives

Last year, nan institution only laid disconnected 47 labor successful Spain, highlighting nan stark opposition pinch this year’s 300+ projected cuts.

Ericsson’s determination could people nan opening of broader layoffs successful Europe’s struggling telecom industry.

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