Telecom equipment maker Ericsson had a 31% decline in its fourth-quarter earnings to $430.9 million.
Earnings also declined because of a dramatic drop in the contribution from its handset unit, Sony Ericsson. The joint venture with Japan's Sony (SNE Quote - Cramer on SNE - Stock Picks) last week swung to a fourth-quarter loss of 187 million Euros ($243 million).
Telecom equipment maker Ericsson said it will eliminate 5,000 additional jobs after reporting lower profits for the fourth quarter because of restructuring costs and reduced profit margins on its Sony Ericsson handsets.
According to Chief Executive Officer Carl-Henric Svanberg, Ericson plans to cut jobs to be more competitively positioned for whatever lies ahead of economic downturn.
The group last year committed to cutting 4,000 job cuts to save 4 billion kronor a year.