Ericsson lays off 1550 in Sweden

The world's largest telecommunications equipment supplier, Ericsson, will shed 1550 staff in Sweden to cut costs.

According to Swedish daily Aftonbladet, the staff reduction plan means full-time employees will be axed, though part-time staff and short-term contractors also face the chop, according to the company.

"The competition in the telecoms market is really tough," Ericsson's head of personnel Tomas Qvist said. 

"We are the market leaders and intend to stay that way in the future. That's why we have to cut costs."

The staff reductions were expected, according to Redeye analyst Greger Johansson, adding that Ericsson's margins have been under pressure for several quarters already.

Even so, the number of redundancies surprised Johansson, who said the figure was many more than expected.

Staff affected by the redundancies will be notified in March next year. All divisions at Ericsson will be subject to staff reductions.