Ericsson to cut jobs as profits drop

February 01, 2008

Ericsson, whose shares have lost nearly half their value since issuing a profit warning in mid-October, said its operating earnings slid to 7.6 billion Swedish crowns ($1.2 billion) in the fourth quarter from 12.2 billion a year earlier. But analysts, who said a downbeat report from Ericsson had been expected, noted the firm's networks business had performed in line or slightly stronger than expected and instead zeroed in on one particular area where Ericsson looked unexpectedly soft -- the company's multimedia division.