The global telecommunications industry is in a depression of unimaginable proportions. Everyone is consolidating and downsizing. Ericsson's tenure has been rocky from the beginning. The company set up shop in San Diego in 1999, when it took over the CDMA infrastructure division from Qualcomm . When Ericsson took over the infrastructure division, it planned to become one of the top three CDMA equipment manufacturers, but it faced fierce competition from industry leaders such as Lucent Technologies and Motorola, as well as Samsung, which recently got into the business. Ericsson moved its San Diego research and development operations to Montreal. The decision was purely a matter of economics, as Montreal is a cheaper place to do business. More than 500 jobs, many of them engineering positions, eliminated, cutting Ericsson's local work force by more than half. The layoffs are part of a companywide initiative aimed at reducing costs. Still, Ericsson plans to keep the division's strategic and business development operations in San Diego. The layoffs are a result of problems in the larger wireless market and Ericsson's inability to compete with Asian manufacturers.
Compared to Global Communication scenario, Ericsson was also facing fierce competition in telecom industry from its competitors who are in the business for a long time. Like Global Communication Ericsson also devise the strategy to outsource its business overseas as a measure to reduce costs. Ericsson relocated some of its employees to its operations in Montreal giving them opportunity to work on interesting assignments and international travel and some employees to be laid off as seen in Global Communication scenario also.
Ericsson provided the opportunity for some of the employees who want to move to other business locally and overseas. The company provided attractive packages to the laid off employees and provided the career counseling services helping them in... [continues]
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