Ericsson set to announce UK job losses

Telecoms equipment maker Ericsson was today expected to announce further UK job cuts as it attempts to drive down costs.

The Swedish group said last month it planned to reduce its administration, sales, marketing and research departments at offices worldwide.

Details of redundancies will be announced when Ericsson unveils a first-quarter trading statement today.

Speculation earlier this week suggested Ericsson could axe up to 6,000 jobs as it faces up to slower market growth.

The group has already confirmed plans to cut 1,200 jobs with the closure of factories in Carlton, Notts, and Scunthorpe in September.

More than 950 staff are employed at the Carlton site, which was previously part of the telecoms operations run by Racal and then Orbital.

The group said it had been hit by the slowdown in the world economy, which has led to ‘‘slower than expected growth’’ in the mobile phone industry.

The decision to cut back production is part of a drive by Ericsson to slash £1.36bn from its annual cost base.

Ericsson’s woes are reflected across the telecoms equipment sector, with Motorola, Siemens and Marconi among those also announcing cutbacks.