ericssonlogo Ericsson will fire 5,000 employees

Ericsson, the Sweden based wireless equipment maker has announced that the company will be laying off 5,000 employees which is 6% of the overall 79,000 workforce. The announcement came after the company saw 31% decrease in the fourth quarter net profit as compared to last year. The reason described by the company was dramatic fall in sales of their Sony Ericsson handset unit along with the restructuring charges.

According to Ericsson’s CEO, Carl-Henric Svanberg:

It remains…difficult to more precisely predict to what extent consumer telecom spending will be affected and how operators will act. To date, our infrastructure business is hardly impacted at all, but it would be unreasonable to think that this would be the case also throughout 2009.