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ERICSSON CUTS

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‘It’s tough. Ericsson has been like a second home’

One in five Ericsson workers in Sweden will have to leave their jobs as a result of cuts announced by the telecoms giant on Tuesday.

Published: 4 October 2016 17:34 CEST
'It's tough. Ericsson has been like a second home'
Andraus Abdulahad has worked for Ericsson for 17 years. Photo: Björn Larsson Rosvall/TT

“It feels really tough. This has been like a second home,” Andraus Abdulahad told Swedish news agency TT.

He has worked at Ericsson's factory in Borås for 17 years.

“The information has been a bit vague. It doesn't feel like we've become much wiser about what's going to happen. But I had not expected it would be this hard,” he added.

The company, which currently employs more than 15,000 workers in Sweden, confirmed months of speculation in a press release on Tuesday morning, saying it would cut 3000 jobs at its hubs in Borås, Kumla, Gothenburg, Karlskrona, Linköping and Stockholm, as well as 900 consultants.

Borås and Kumla are expected to suffer the worst hits.

“We have alternatives to these destructive proposals. As we see it, the company risks losing its competitiveness if it gets rid of skilled employees,” said Andreas Brissman, the chairman of trade union IF Metall's local branch in south-western Swedish town Borås.

Ericsson's president and CEO Jan Frykhammar said earlier on Tuesday that the company was going through a “large transformation” from hardware to software. It has previously announced plans to be at the forefront of 5G wireless technology in Sweden's tech race.

He called it “a cure to secure Ericsson's endurance and in the long term secure the company's competitiveness.”


Ericsson CEO Jan Frykhammar. Photo: Maja Suslin/TT

Enterprise and Innovation Minister Mikael Damberg said it was a “difficult moment for employees and communities affected”, but welcomed that the company had vowed to continue to focus on its developments of software and future tech in Sweden.

“Ericsson could have chosen to put their 5G operations anywhere else on this planet, but chose to do it in Sweden. A different decision would have been very ominous for Swedish industry,” he said at a press conference, ahead of visiting Kumla on Wednesday to speak to affected workers.

The government on Tuesday appointed dedicated Ericsson coordinators to liaise with the company and the towns affected by the imminent layoffs, and said it would work to help those losing their jobs and attempt to bolster IT and telecommunications hubs across Sweden.

“Those who need it will get education and help to move on to other jobs,” said Damberg.


Enterprise and Innovation Minister Mikael Damberg. Photo: Jessica Gow/TT

Ericsson also said on Tuesday that it would employ around 1000 engineers over the next three years.

But the company has gone through a turbulent period recently. At the start of the summer its shares dropped significantly after reports in a Swedish newspaper claimed revenue figures had been exaggerated.

Operating profits for the second quarter of 2016 were also well below expectations, leading to long-standing CEO Hans Vestberg being fired in late July.

For members

WORKING IN SWEDEN

Five things you need to do right away if you’re getting laid off in Sweden

Facing a layoff in Sweden? Here are the key things you should do right away.

Published: 13 August 2024 10:26 CEST
Updated: 9 September 2024 14:38 CEST
Five things you need to do right away if you're getting laid off in Sweden

Employment levels in Sweden have been quite volatile in 2023 and 2024, with several major companies in the country announcing significant layoffs. On September 9th, Northvolt became the latest company to announce it would be reducing its workforce.

In early August, the Swedish Labour Ministry announced that the country was facing its highest unemployment rate in a decade, excluding the pandemic period.

This economic landscape has left many workers uncertain about their job security.

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And while receiving a layoff notice is undeniably stressful for anyone, this stress is often magnified for foreigners who may not be completely familiar with the Swedish employment system and their workplace rights.

Without proper knowledge, you might agree to terms that aren’t in your best interest. This can, in turn, lead to decisions that could have long-term career consequences.

The Local has consulted experts in the field to compile an overview of the critical actions you should take if you ever face a layoff in Sweden.

Don’t rush to sign anything

Amanda Herzog, founder of Intertalents in Sweden, a consultancy that helps international job seekers find their dream job in the country, published a popular post on LinkedIn Pulse in December 2023 with multiple excellent tips for workers regarding the Swedish layoff process.

She told The Local Sweden that her recommendations still stand in mid-2024, permitting us to re-share her tips, and pointed to some of the more important ones.

“Never, ever sign a termination agreement on the same day you receive the news,” Herzog advised, noting that the emotional shock can cloud your judgment.

  • Don’t miss any of The Local’s stories about working in Sweden by downloading our app (available on Apple and Android) and then selecting Working in Sweden in your Notification options via the User button

Instead, find a union immediately, preferably the same day, to get a second opinion on the terms and conditions.

“During my first layoff, I joined a union and sought advice the same day. It took a week to accept their terms, which worked in my favour as the company was keen on a voluntary headcount reduction,” Herzog shared.

Contact a labour or immigration lawyer (if you’re on a work permit)

Losing your job affects your right to stay in Sweden if you’re on a work permit.

You typically have three months to find a new job and submit a work permit application with your new employer (The Local has a more detailed article on the layoff implications on your work permit, which you can find here).

However, Saaya Sorrells-Weatherford, co-founder of the relocation consultancy Emigreat, told The Local that as a foreigner, you might not be familiar with the nuances of the Swedish employment system and could agree to terms that shorten your stay in Sweden.

“If you are given your termination notice, contact a labour or immigration lawyer immediately,” she said.

Consulting with a lawyer ensures you understand your rights and work through facts and applicable regulations, not word-of-mouth anecdotes.

Negotiate your severance, use leverage

Herzog also singled out several necessary actions that workers who are about to be laid off need to consider regarding severance contracts.

“Severance contracts can be negotiated,” Herzog emphasised.

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Nothing is final until you sign the agreement. The company might present the decision as final, but you have leverage.

“A union process can be time-consuming for the company and may not end in their favour,” Herzog said.

Use this to your advantage to negotiate better terms.

“I was able to negotiate a raise during my first layoff, even though I would no longer be working, as well as negotiated two extra working months from the termination date.

“This meant I had seven months total of future salary coming to me. I was also able to negotiate a free cell phone and laptop that I was using at work,” she noted.

Get recommendations early – and build a portfolio of your work

Asking your coworkers for recommendation letters and LinkedIn recommendations before your last day is imperative.

“People forget and move on and are less responsive when they no longer see you daily,” Herzog said.

So, make sure to secure these endorsements while your contributions are still fresh in their minds.

Furthermore, you should compile a portfolio of your work as soon as possible.

Companies can restrict access to files and systems post-layoff, making it crucial to collect relevant data while you still can.

“Start collecting work samples, case studies, photos, results, and important contacts in the same week you receive the news,” Herzog suggested.

Ensure that your layoff is being handled properly

Make sure your layoff is handled appropriately and legally.

“One of my layoffs was mishandled, and I used union support to hold the company accountable,” Herzog recalled.

While legal advice can be expensive, it’s far more affordable than fighting deportation, Sorrells-Weatherford told The Local.

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