Ericsson’s Fourth‑Quarter Glitch: A $687 Million Loss
Swedish telecom giant Ericsson hit a rough patch in Q4 2018, taking a hefty 687 million‑dollar plunge. The downfall came largely from its Business Support System division, the part of the company that sells real‑time charging and billing software.
Why the Coffeepot Sizzled
- Demand Dips: Emerging markets show little appetite for Ericsson’s latest equipment.
- Operator Cuts: Mobile carriers are slashing budgets for network upgrades.
- Expired Certificates: A December outage at O2 left the network down for an entire day, prompting a lawsuit for millions in damages.
Redesigning the Game Plan
To keep fingers on the pulse, Ericsson started a sweeping restructure in early 2018:
- Chief executives and senior managers were replaced.
- Since July 2017, roughly 18,000 positions have been axed.
- Now the focus is on tightening product offerings and boosting efficiency.
Looking Ahead
The company remains in the midst of a corporate overhaul, aiming to rope in the confidence of investors and posit itself as a leaner, more agile operator.
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