Even less IT jobs Here?
Oct 2nd 2002, 4:15 am
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Even less IT jobs Here?
Yet another booming Australia story?
October 02 2002
Ericsson Australia is shutting down its Australian research and develop operation, leaving 450 staff jobless.
Ericsson said the move came as part of the measures it announced when it unveiled its global second quarter results in July.
"As part of the measures indicated in Ericsson's global quarter two financial results, Ericsson announced today that Ericsson AsiaPacificLab, the regional R&D arm of Ericsson located in Australia, would close," Ericsson Australia said in a statement.
"This is part of a global reduction in R&D across the company's global operations in the last 18 months and will impact 450 staff in both Melbourne and Sydney over the next six to nine months."
The Melbourne-based operation develops new technology used in Ericsson's global product range, and its closure would have no impact on Australian customers, Ericsson said.
Ericsson's local managing director Barry Borzillo described the closure as "very disappointing", and said the decision was not taken lightly.
"This in no way reflects on the competence and performance of our R&D group in Australia, but underlines the tough decisions that are being taken in the current environment," Mr Wanman said in a statement.
The laboratory's managing director Ric Clark said affected staff were extremely disappointed, but hoped to complete existing assignments and transfer responsibilities professionally.
"It is a sad day for R&D in Australia with no upside except that the local industry will have access now to some of the finest communications and software engineers in the world as AsiaPacificLab completes its assignments," he said.
Mr Clark said the facility had 75 registered patents.
Its achievements included developing the "call queuing system" which still forms the basis of call centre operations.
Reporting a $700 million net loss for the telco's global second quarter, from a net loss of $2.8 billion in the previous second quarter, Ericsson in July said it was intensifying its cost reductions begun the previous year.
"We continue to plan our operations to return to profit at some point in 2003," Ericsson president and chief executive Kurt Hellstrom said at the time.
"In light of lowered market expectations for this year, we have intensified the cost reductions that we started last year and are substantially ahead of schedule.
"By the end of next year, we believe we will have a low enough cost base to return to profit."
October 02 2002
Ericsson Australia is shutting down its Australian research and develop operation, leaving 450 staff jobless.
Ericsson said the move came as part of the measures it announced when it unveiled its global second quarter results in July.
"As part of the measures indicated in Ericsson's global quarter two financial results, Ericsson announced today that Ericsson AsiaPacificLab, the regional R&D arm of Ericsson located in Australia, would close," Ericsson Australia said in a statement.
"This is part of a global reduction in R&D across the company's global operations in the last 18 months and will impact 450 staff in both Melbourne and Sydney over the next six to nine months."
The Melbourne-based operation develops new technology used in Ericsson's global product range, and its closure would have no impact on Australian customers, Ericsson said.
Ericsson's local managing director Barry Borzillo described the closure as "very disappointing", and said the decision was not taken lightly.
"This in no way reflects on the competence and performance of our R&D group in Australia, but underlines the tough decisions that are being taken in the current environment," Mr Wanman said in a statement.
The laboratory's managing director Ric Clark said affected staff were extremely disappointed, but hoped to complete existing assignments and transfer responsibilities professionally.
"It is a sad day for R&D in Australia with no upside except that the local industry will have access now to some of the finest communications and software engineers in the world as AsiaPacificLab completes its assignments," he said.
Mr Clark said the facility had 75 registered patents.
Its achievements included developing the "call queuing system" which still forms the basis of call centre operations.
Reporting a $700 million net loss for the telco's global second quarter, from a net loss of $2.8 billion in the previous second quarter, Ericsson in July said it was intensifying its cost reductions begun the previous year.
"We continue to plan our operations to return to profit at some point in 2003," Ericsson president and chief executive Kurt Hellstrom said at the time.
"In light of lowered market expectations for this year, we have intensified the cost reductions that we started last year and are substantially ahead of schedule.
"By the end of next year, we believe we will have a low enough cost base to return to profit."
