Ericsson, the Sweden-based telecommunications company, has been focused on network hardware, improvement, and maintenance services for a while now, but they have decided to shift their focus. They are now putting an emphasis on cloud services, IP networks, TV, media, and OSS/BSS. Ericsson plans to change their customer base from predominantly telecommunication carriers to other customers and companies. In turn, this will create major job and cost cuts.
In order for Ericsson to cut a goal amount of costs of $1.21 billion, cutting jobs will become an undesired necessity. Ericsson plans on reconstructing their business focus which will cost approximately $405 to $540 million as well as hundreds of thousands for future yearly management costs. Job cuts will bring them this needed money.
As the tech world evolves towards cloud services, so does Ericsson, as they always stay on top of the latest technological innovations. Hans Vestberg, the CEO of Ericsson, stated, “We are confident in our choice of strategy to play a key role in this new world. We will continue to build on our combined strength of technology and services leadership to stay relevant to our customers in a transforming industry.” From hardware to software, this company will grow and strive no matter what direction they choose to go in.
At the end of the day, whatever changes Ericsson makes are in the best interest of the future of technology in our world. Launch 3 Telecom provides network solutions to major companies and telecom carriers everyday. If interested in buying or selling Ericsson equipment, please contact Launch 3 Telecom at 877-878-9134, or email us at email@example.com.