Ericsson to Cut Costs and Jobs

FierceWireless reports on Ericsson’s plan to cut costs by $1.21 billion by 2017, refocusing efforts around cloud, software and non-carrier customers.

Ericsson will slash jobs as part of that effort, though the vendor did not say how many positions it will cut. The cost cuts are part of Ericsson’s larger strategic transformation toward software, media and working with customers that are not telecommunications carriers.

“The key components of our profit improvement plan is to strengthen core business, build strength in targeted areas while at the same time continue to improve our cash flow,” said Ericsson CFO Jan Frykhammar.

FierceWireless goes on to report that as part of that effort, Ericsson is looking to branch out its customer base beyond carriers with 20 to 25 percent of revenues coming from other types of customers than CSPs by 202o, up from 10 percent today.

Ericsson called out cloud, IP networks, TV and media and OSS/BSS as markets for growth.

Read the full article at FierceWireless.