Ericsson Raynet to Restructure.
"The steps announced today reduce our operating costs and break-even point significantly in part because we will now take advantage of lower cost Ericsson manufacturing capacity and integrate our administrative functions within those already in place in the U.S. and Sweden," said Stig Johansson, Ericsson Raynet president and CEO. "Our R&D efforts will continue the development and refinement of our existing fiber access products for markets around the world. Taken together, these moves further our earlier desire to move toward the optimum integration of the joint venture into Ericsson and will strengthen our access product lines worldwide."
These changes will eliminate approximately 300 positions from Ericsson Raynet's 730-person organization. Nearly all of the reductions will take place in Menlo Park, California. Ericsson expects that some employees will be offered positions in other of its expanding California operations. Severance benefits and outplacement assistance will be provided to the Ericsson Raynet employees whose positions are being eliminated.
Raychem Corporation of Menlo Park, California, is an international company with more than 9,000 employees in more than 40 countries and sales of $1.5 billion in fiscal 1994. The company utilizes its expertise in materials science, product design and process engineering to develop, manufacture and market high-performance products for electronics, industrial and telecommunications applications.
Ericsson's 75,000 employees are active in more than 100 countries. Their combined expertise in switching, radio and networking makes Ericsson a world leader in telecommunications.
Kathy Egan, Vice President Communications
Scott F. Wylie, Director of Corporate Communications
|Printer friendly Cite/link Email Feedback|
|Date:||Jun 20, 1995|
|Previous Article:||Nanometrics secures $4.7 million loan; cash and working capital supplemented to support future expansion.|
|Next Article:||Horizons Technology and Tseng Labs form alliance enabling high-quality video on the desktop; alliance to integrate TrueMotion video into VIPeR-based...|