Ericsson cuts more jobs as profits drop 92 percent

Telecommunications firm, which has cited a decline in GSM equipment sales, is to cut 500 jobs on top of those it announced last year

Ericsson has announced 500 job cuts in the wake of a 92 percent year-on-year drop in quarterly profits.

On Monday, the telecommunications firm announced its financial results, which showed a drop in earnings per share from 1.21 Swedish kronor (US$0.86) in the fourth quarter of 2008, to 0.1 kronor (US$0.01) in the fourth quarter of 2009.

Ericsson blamed the drop on, among other factors, "the anticipated decline in GSM sales, accelerated by the current economic climate, which is not yet offset by the growth in mobile broadband and investments in next-generation IP networks".

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