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Cell phone giant Ericsson cuts 5,000 jobs

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  • Swedish company says it is cutting jobs as part of cost-saving measures
    About 1,000 jobs lost will be in Sweden, mainly at HQ in Stockholm
    Ericsson says measures will save an estimated $1.2 billion
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(CNN) -- Swedish-based telecommunications company Ericsson announced Wednesday it is cutting 5,000 jobs as part of cost-reducing measures.

The cuts will come through layoffs as well as cuts in the numbers of consultants and other temporary staff and consolidation of research and development sites, the company said.

About 1,000 of the job cuts will be in Sweden, primarily in Stockholm, where the company is based.

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The announcement came in a report announcing a strong fourth quarter for the company, with sales up 23 percent. Ericsson said sales for all of 2008 were up 11 percent from the year before. Video Watch Ericsson CEO talk about company's financial future »

Cost-reducing measures in 2009 will save the company about 10 billion Swedish krona ($1.2 billion), Ericsson predicted.

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