Stock Exchanges around the world have seen billions knocked off the prices of technology firms in recent times and some businesses have been wiped out since the New Year. Big name companies have been affected by mergers such as Vodaphone and Orange. The Swedish company Ericsson is stopping production of mobile phones at two factories threatening 1,200 jobs. They are also cutting 2,100 jobs in Sweden. The multinational company's plans include closure and sell off of factories in Carlton, Nottinghamshire, Scunthorpe and Lincolnshire.
All production is scheduled to stop in Britain in the third quarter of the year.
The problem facing mobile phone production is typical anarchy of production. In order to meet demand massive investment was made to gear up production, employing thousands of workers. Efficiency and productivity has created a glut. Mobile phone companies have attempted to discount in order to cut stocks and eventually closedown of production has had to be considered and even implemented. Union leaders are seeking urgent talks with the company and said that they would fight against compulsory job losses.