Swedish telecoms equipment maker Ericsson said today it would cut thousands more jobs as the market for its products looked set to fall more sharply than expected.
Ericsson, the world's biggest producer of mobile networks, reported its 10th straight quarter in the red, with an adjusted pre-tax loss of $421.4 million.
Chief executive Mr Carl-Henric Svanberg, who took up the post just three weeks ago, said the workforce will fall to 47,000 next year from 52,000 planned for the end of 2003 and 61,000 now.
Without the new job cuts, Ericsson would end this year with 54,000 staff, Mr Svanberg said.
Ericsson shares jumped almost 14 per cent on the news.
Investors see cost cutting at Ericsson as vital amid falling global demand for telecoms equipment. Some operators are slashing spending to cut debt, and many are delaying the launch of ultra-fast 3G mobile networks as demand for them is unproven.