Promotions

Wireless Review magazine has announced two editorial staff promotions.

Betsy Reeves has been named supplements editor. Reeves joined Wireless Review in January 1998 as staff writer. In her new position, Reeves will oversee the editorial planning and direction of all supplements. In addition to spearheading supplements, including writing, editing and coordinating editorial content, Reeves will continue to contribute features to the magazine and serve as the staff contact for revenue-management issues.

Maggie Chaffee has been promoted to senior associate editor. She joined Intertec Publishing as editorial assistant in 1996, serving on Cellular Business and Wireless World. She later was promoted to associate editor, moving to the staff of Wireless Review when the magazine launched in January 1998. Chaffee's current responsibilities include editing, production and original writing, with special emphasis on the New Products department.

Cutbacks & Contracts

January was a busy month for Ericsson. First, the company announced it would eliminate more than 11,000 jobs within the next two years. Just days later, reports surfaced that the company's December low-profit warning was coming true. As of press time, earnings were expected to drop by at least 6%.

Some reports claim the job cuts are a direct result of low profits, but Kathy Egan, vice president of communications, said the job cuts are not connected to profits. The timing of both announcements is more of a coincidence.

Coincidence or not, it is clear that Ericsson is making major changes. It has initiated a 2-year, company-wide restructuring program to streamline its operations and to refocus the company.

The company will eliminate the largest number of jobs (3,300) from its manufacturing facilities in Sweden. Ericsson reported the main reason behind these cuts is that technology advancements in manufacturing require less labor-intensive work and fewer personnel to complete the jobs. Other business segments also will feel the heat from cutbacks, including enterprise solutions, consumer products and general administrative operation segments.

The main drive behind Ericsson's restructuring is to make sure its operations are ready to move forward with its new corporate strategy. That includes focus on data, IP telephony and mobility.

In January, the company signed a software development agreement with Bunyip to develop an Index search engine and two of the eight Internet access interfaces for Ericsson's Directory Access Gateway product. One day later it announced a contract with British Telecom to support voice-to-data and IP-based services. Later in January, Ericsson announced an exclusive infrastructure agreement to supply TDMA equipment for Tritel's PCS markets in the southeastern United States.

One area notably missing from these recent announcements is the wireless phone business, which has taken a hit in low profits and loss in market share. The company chalks it up to competition and lower profit margins on low-end consumer handsets.

Despite its struggle, Ericsson has included the wireless phone sector in its future strategy and will do what's necessary to compete.

Egan emphasized that the effect on U.S.-based jobs would be minimal, mainly because newer U.S.-based facilities aren't focused on manufacturing equipment for the legacy (wired) side of the business. As a result, domestic facilities already are geared for future developments.

Ericsson isn't the only company having to deal with layoffs. Qualcomm recently announced that slow sales of its digital phone technologies overseas have caused it to lay off around 700 people, who represent 6% of its 11,000 employees.