Ericsson plans more cost cuts as shares plunge after poor Q2

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Ericsson shares have plunged by around 10 per cent after the Swedish mobile networks company reported a second-quarter loss with sales falling 8 per cent, mainly due to lower software demand. It also warned of further hard times ahead with further cost cuts. Ericsson says it turned a net loss of 1 billion kronor (Dh440,760; $120,000) in the period, down from a profit of 1.6 billion kronor in 2016. CEO Borje Ekholm said Tuesday he was “not satisfied” with the company’s underlying performance, adding that it would speed up planned annual cost cuts to at least 10 billion kronor by mid-2018.

Ericsson shares were down more than 10 per cent at 54.65 kronor in morning trading in Stockholm. (AP)