Ericsson to cut Swedish staff as downturn bites

STOCKHOLM Wed Nov 7, 2012 4:09am EST

STOCKHOLM Nov 7 (Reuters) - Telecoms gear maker Ericsson said on Wednesday it would cut 1,550 staff in Sweden as it looks to drive down costs, with the majority of layoffs coming in its underperforming networks unit.

In the third quarter, Ericsson's core profit fell 42 percent due to slower orders and a shift in business mix to less profitable contracts and the company said it would focus on cost cuts.

It gave no details of how the job cuts would affect annual costs. The company has nearly 18,000 employees in Sweden. (Reporting by Simon Johnson. Editing by Patrick Lannin)