Ericsson, Estonia’s largest exporter, is suffering from lack of orders and could be forced to downsize, say sources.
The claim that Ericsson was not doing well in Estonia was confirmed by three different sources which preferred to remain anonymous. One of them said that by the worst scenario, the company could be forced to lay off up to a third of its 1,400 employees in Estonia.
Seth Gustav Lackmann, sales manager for Ericsson Eesti and member of the management board, said in comment that the company was going through a quiet period and that nothing can be said before the company publishes its quarterly report.
“These are rumours and I am not commenting them,” said Lackmann about the claims that the company was planning to downsize. Jonas Ygeby who manages the Ericsson Eesti plant also had no comment.
One indication that the company may be preparing for leaner times is that it has shown no interest in the Elcoteq Tallinn plant which is looking for a buyer after the Finnish parent company declared itself bankrupt last week.
Estonian minister of economic affairs Juhan Parts dismissed speculation that the future of manufacturers of telecommunications equipment was bleak. “If you look around, it is no longer people but things that are connected. These companies should be working flat out. If there are some problems, it is best that the companies themselves comment them,” said Parts.
Toomas Hõbemägi
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