LM Ericsson’s Infocom datacoms unit is paying the price for its continued poor performance, and the company has confirmed last week’s reports (CI No 3,303) that it would be cutting up to 10,000 more jobs from the unit as part of a restructuring plan started two years ago. Further cuts which will be made worldwide are part of an ongoing process, said the company. The Infocom Systems unit, which includes the former Public Telecommunications and Business Networks business areas plus all Ericsson’s radio access to fixed-wire networks, and includes responsibilities for the AXE range of exchange systems, has been singled out for its poor performance for some time. It currently employs around 38,000 people. Ericsson spokesperson, Per Zetterqvist cited four reasons for the problems faced by the division: price pressure, increased competition, a deregulated market and increasingly fast technical development. Yesterday, the firm announced the sale of its printed circuit board production unit in Norrkoping, Sweden, to Viasystems Group Inc, of St Louis, Missouri. The unit supplies boards to three Ericsson units: Infocom Systems, Mobile Systems and Mobile Phones and Terminals, and employs 325 people. Viasystems, which calls itself the second largest manufacturer and marketer of printed circuit boards and backplances in the world, will become the major printed circuit board supplier to the three units. No financial terms were given.
