Swedish telecoms equipment-maker Ericsson said yesterday it would cut a further 7,000 jobs as the market for telecoms equipment continues to weaken.

The company, which employs around 1,500 staff in Dublin and Athlone, also recorded its tenth straight quarter in the red, with a pre-tax loss of 3.5 billion Swedish krona (€383.5 million).

Sales fell 30 per cent year-on-year to 25.9 billion krona and orders of telecoms equipment fell to 27.1 billion krona. The results came in below most analysts' estimates but Ericsson's shares rose when the company said it would cut jobs to defend its margins.

Ericsson Ireland would make no comment on the announcement yesterday when contacted by The Irish Times.

But it is understood the telecoms firm has already cut almost 500 Irish jobs since it got into financial difficulty more than two years ago.

"The macroeconomic environment has become more uncertain with weaker short-term demand, further actions are therefore needed," said Ericsson's new chief executive, Mr Carl-Henric Svanberg.

Under the new plan the workforce will fall to 52,000 at the end of 2003 from 61,000 now. Half of the new job cuts will be in Sweden.