Ericsson unveiled plans Monday, to cut 500 jobs as the telecommunications giant announced a huge 92 per cent drop in profits in the final quarter of 2009.

The global financial crisis has resulted in a strong drop in demand for their products, forcing the telecommunications company to slash 5,000 jobs in 2009.

The Swedish company reported a 13 per cent drop in sales in the three months through December to 58.3 billion kronor, or $8.1 billion, from 67 billion kronor a year earlier. Profit in the quarter slipped to 700 million kronor from 4.1 billion kronor a year earlier. Profit slipped to 700 million kroner or $97.2 million from 4.1 billion kroner a year earlier.

Ericsson employed 82,500 at the end of December 2009.

Company stocks fell around 2.5 per cent in Stockholm stock exchange.

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