Ericsson Axes Thousands of Workers as Telco Sales Slow

Ericsson AB (ERIC), the Sweden-based telecom equipment maker, is cutting 5,000 jobs because it expects fewer telco orders over the next few years.

The company announced its fourth-quarter 2008 earnings on Wednesday, a week earlier than scheduled, along with the additional layoffs. Ericsson already eliminated 4,000 positions last year.

Ericsson is the world’s largest manufacturer of telecom equipment. Its net income plummeted to $717 million in the fourth quarter, a 31 percent drop.

Its joint venture with Sony isn’t faring well either. Last week, Sony Ericsson said it lost $247 million in its fourth quarter.

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