Ericsson is eyeing job cuts as part of a plan to cut costs.
As part of the company’s 2014 Capital Markets Day, the Swedish telcom equipment maker said it is looking to save $1.2 billion with job cuts and other cost-saving measures that will be fully realized by 2017.
President and CEO Hans Vestberg, called the company’s plan to increase cost-cutting and strategic investment, “the next step in our transformation to become a leading ICT player.”
Ericsson expects a compound annual growth rate (CAGR) of 3 to 5 percent for the 2013-2017 time period. Broken out, Ericsson estimates that the total network equipment market during the same period will show a CAGR of 2 to 4 percent, while the telecom services market is estimated to show a CAGR of 4 to 6 percent.
Ericsson currently marks down approximately $269 million in annual restructuring charges.
Chief Financial Officer Jan Frykhammar, Chief Financial Officer, said in a statement that while Ericsson expects operating expenditures to peak in 2014, the company believes it can do more to increase efficiency and reduce cost.
Shares of Ericsson were up 2 percent Thursday in early trading $12.05.
Filed Under: Infrastructure
