STOCKHOLM (Reuters) - Ericsson announced on Tuesday plans to shut its telecom cable manufacturing facility in Sweden and would take a 500 million Swedish crown ($75 million) charge as a result.
The company said it had given notice of a reduction of 354 positions. It said the market for copper cable had declined while fiber cable demand had grown over the last years, with production shifting towards Asia.
"There is overproduction on the cable market in Europe," Tomas Qvist, head of Special Products in business unit Networks, said in a statement. "Unfortunately, our production has not been operating at full capacity for a long time and has struggled with profitability."
(Reporting by Mia Shanley)