Poor Ericsson results may lead to job losses

Following poor earnings figures and cost cutting measures, Ericsson (Nasdaq: ERICY) and Siebel Systems (Nasdaq: SEBL) have sparked speculation that they may cut jobs in their Irish operations.

Ericsson announced a Q2 loss of SEK $2.7bn and announced that it would cut costs by SEK €10bn, leading to a loss of 5,000 jobs.

Ericsson, which employs 1,500 in its Irish operations located in Dublin and Athlone already cut 150 jobs here, earlier this year.

Siebel Systems reported a 61% drop in its quarterly revenue and announced that it was to cut around 15% of its total work force.

It is expected that a similar percentage of the company's 100 strong staff in Ireland will be affected.

Siebel's Irish operations are located in Galway, where it has part of its Technical Services Group.