Following the sale to foreign corporations of such local jewels as Volvo's car operations and drugmaker Astra, Ericsson is now Sweden's undisputed corporate flagship. It is the largest private employer, with about 45,000 workers. Swedish suppliers may bring the total number of workers dependent on Ericsson to 100,000. Now, Swedes who had counted on collecting paychecks at Ericsson for life are feeling insecure. Ericsson has announced cuts of 22,000 jobs, about half in Sweden.
Suppliers are also likely to be hit hard.
So far, business is far more gloomy than consumers about Sweden's economic prospects. But there are some early signs that shoppers could be feeling the chill. And Michael Treschow, CEO of appliance giant Electrolux Group, reports that retailers are slashing orders. Not only is a huge question mark hanging over Sweden's biggest company, but the small dot-coms that seemed to offer so much promise are mostly history. Johan Malmliden, managing director for Sweden of Internet consultant Icon Medialab, has watched as one client after another went to the wall.