Another way to reduce costs is to make fewer products.
Analysts said systems based on two older wireless technologies could go. Ericsson has only two clients for network gear employing a Japanese system called Personal Digital Cellular. Sales of products using the other technology, called Time Division Multiple Access, are falling as US phone companies shift to rival technologies.
"Those are two areas Ericsson may attempt to cut costs in," said Matthew Lewis, an analyst at Daiwa SBCM Europe, who has a "hold" rating on the stock.
Though Lehman Brothers analysts Tim Luke predicted Ericsson will cut as many as 10,000 jobs this year, Hellstroem will likely wait as long as possible before announcing more firings, analysts said. At a shareholders meeting, Hellstroem lamented the job cuts he made last year.
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