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Job looses in Lund, Sweden on the wire as Ericsson and STMicroelectronics agree on strategic way forward for ST-Ericsson

Monday, 18 March 2013
Between 400 and 600 workers in Ericsson’s research centre in Lund are poised to lose their jobs when ST Ericsson is divided between the parents STMicroelectronics and Ericsson.

This comes after Ericsson and STMicroelectronics today announced an agreement on the way forward for the joint venture (JV) ST-Ericsson. In a press release, Ericsson writes and echo past communiqué of December 2012, that both have been working together toward a strategic solution for the JV. Ericsson said that after months of intensive joint work, the parent companies have selected the strategic option which maximizes their respective future prospects and growth plans.

“It’s has been a tough journey. Major technological changes went faster than anyone had anticipated. The market for feature phones went down very quickly and went over to smartphones,” says Helena Norrman, Head of Communications at Ericsson to radio Sweden
This means that about 1600 people will be without jobs. Between four and six hundred of these people are in Lund. The split will be implemented this fall, according to Helena Norrman.

In the press release, Ericsson writes that the main steps agreed upon to split up the JV are the following:

– Ericsson will take on the design, development and sales of the LTE multimode thin modem products, including 2G, 3G and 4G multimode

– ST will take on the existing ST-Ericsson products, other than LTE multimode thin modems, and related business as well as certain assembly and test facilities
Starting the close down of the remaining parts of ST-Ericsson

The formal transfer of the relevant parts of ST-Ericsson to the parent companies is expected to be completed during the third quarter of 2013, subject to regulatory approvals.

After the split up it is proposed that Ericsson will assume approximately 1,800 employees and contractors, with the largest concentrations in Sweden, Germany, India and China.

It is also proposed that ST will assume approximately 950 employees, primarily in France and in Italy, to support ongoing business and new products development within ST.
by Scancomark.com Team

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