According to Rosenheim media reports, Ericsson plans to cut 400 jobs at Kathrein by 2021 in order to increase the efficiency of the antenna area. However, this is not the case, as Kathrein now clarifies.
Update, 6.30 p.m. – Ericsson plans to cut up to 300 jobs in Rosenheim
According to several media reports, the reduction of around 400 jobs that Ericsson has planned for the antenna sector next year will also affect some in Rosenheim. A spokesman for the group has confirmed that 250 to 300 of the jobs that are to be eliminated are located in Rosenheim.
The deletions would primarily affect former Kathrein employees who were taken over by Ericsson in 2019. 30 percent of these employees will then lose their jobs, the spokesman said.
rosenheim24.de has made a request to Ericsson and is expecting an answer by Friday.
Update, 12:31 pm: No job cuts at Kathrein
Contrary to the media report from heise.de, no jobs will be cut at Kathrein with its headquarters in Rosenheim. Philipp Schlosser, Kathrein press spokesman, explained this to rosenheim24.de.
Ericsson bought Kathrein’s core business, the mobile communications sector, last year. This is now entirely subject to the Ericsson company. The Swedish network supplier wants to cut up to 400 jobs in this sector. It is currently still unclear whether jobs at the Rosenheim location are also affected. “However, this does not affect any areas of Kathrein,” emphasized Schlosser.
Despite the Corona crisis, one can look positively into the future. This April Kathrein Digital Systems (KDS), market leader for digital reception of satellite, terrestrial, cable and IP and their signal distribution, celebrates the one year anniversary of its independence.
KDS isolated itself from Kathrein SE last year. The antenna and filter division has been owned by the Swedish Ericsson Group since October 2019.
rosenheim24.de has already inquired about Ericsson in connection with the possible job cuts and is waiting for answers.
First registration:
According to heise.de, network supplier Ericsson plans to cut as many as 400 jobs at its subsidiary Kathrein.
As Ericsson announced in its quarterly report on Wednesday, various measures are aimed at increasing the profitability of the antenna construction department and reducing costs in order to further increase the Group’s competitiveness. The measures that are supposed to contribute to this efficiency apparently also include job cuts at Kathrein, which will affect 400 employees, reports heise.de. It is still unclear in which area or location these positions should be reduced.
The head of Ericsson’s network division, Fredrik Jejdling, told Light Reading that Ericsson had only taken over Kathrein last year and that operations had to be partially restructured in order to achieve the profitability that had to be achieved. According to Jejdling, these measures should have no impact on research and development. The reconstruction costs are expected to be around 46 million euros.
The job cuts should therefore take place sometime between April 22 and the first quarter of 2021. Discussions with employee representatives have already started.
Despite everything, Ericsson CEO Börje Ekholm found the takeover of Kathrein to be a “key investment”, because according to heise.de he sees good growth opportunities in the antenna sector. But you also have to spend some time in the industry to make it more competitive.
Ericsson only took over Kathrein’s core business in February 2019, and the deal was closed in October.
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