Ericsson DBO reduction to cost UK jobs

Ericsson is folding back its data backbone and optical networks channel initiatives after they failed to add incremental sales, according to industry watchers. The move is expected to lead to redundancies.

Ericsson is folding back its data backbone and optical (DBO) networks channel initiatives after they failed to add incremental sales, according to industry watchers. The move is expected to lead to redundancies.

The phone giant is integrating DBO channel initiatives into existing indirect strategies within its Enterprise division. According to sources familiar with the company, this latest development will lead to the loss of about 30 UK jobs.

Frederic Boone, director of marketing at Ericsson Enterprise, said: "From this month, Ericsson Enterprise is going to run the DBO product line and make it available to its channel." The company said the move would apply globally and would be open to all existing and new partners.

Current partners of the Enterprise business will now receive support to sell both routers and remote access products within the division's portfolio.

Manny Pinon, sales and marketing director at Ericsson distributor Norwood Adam, said: "The DBO channel was brought in to bring incremental business from a data perspective, and this did not seem to pan out."

Yuri Pasea, managing director at Enterprise distribution partner FutureLink, said: "We are looking for any products that enhance our offering. Many of the components in the DBO range require reseller training, which we are very interested in doing."

Pinon added: "Ericsson already has an established channel in the Enterprise and Wireline units and is in effect bringing the products back home."

The DBO unit was formed last year after the acquisition of ACC in 1998.