Ericsson AB is planning to eliminate about 5,000 more jobs in anticipation of spending cuts by telecommunications companies this year.
Stockholm-based Ericsson said in a statement today the measures, including moving some operations to low-cost countries and eliminating temporary workers and consultants, will cost $717 million and lead to annual savings of 10 billion kronor by the second half of 2010.
Ericsson had announced 4,000 job cuts last year. Ericsson surged as much as 12 percent in Stockholm trading, the most in three months.
Ericsson said as recently as Nov. 20 that demand for wireless networks this year will be “flattish,” a statement the company didn’t repeat today.
Last week, Sony Ericsson Mobile Communication Ltd., Ericsson’s handset venture with Sony Corp., reported a net loss of 187 million euros ($245 million) in the quarter.
