The world’s largest maker of mobile phone network equipment is slashing its payroll in a bid to trim costs.
Ericsson (NASDAQ:ERIC) will lay off 1,550 employees in its native Sweden as it scrambles to deal with slowing sales due to a sluggish worldwide economy, Reuters noted.
Investors weren’t happy with the news. Shares of Ericsson fell almost 2% in Wednesday morning trading in New York.
The company, which employs 17,768 workers in Sweden, will invest money saved through the payroll cuts on research and development. Ericsson officials noted that the company would record $597 million in restructuring charges this year.
Prices for telecommunications equipment have fallen as companies delay upgrading infrastructure to save money. Continued economic softness in Europe and the U.S., and a potential slowdown in China have dented IT spending around the world.