Ericsson, which employs 2,500 people in the Republic, will reduce its global workforce by almost 5,000 people following a decision to outsource its entire manufacturing of mobile handsets.

In a statement last night, Ericsson said the decision would not affect its software development, marketing and services operations in Dun Laoghaire, Athlone and Clonskeagh. A spokesman added that no job losses were expected and Ericsson's new mobile application software centre in Cork would open shortly as scheduled.