8,500 employees will go to ERICSSON
Ericsson Layoffs: The company announced plans to cut around 1,400 jobs in Sweden on Monday. While tech companies are laying off thousands of employees citing economic conditions, this will be the biggest layoff in the telecom industry.
Telecom equipment maker Ericsson will lay off 8,500 employees globally as part of its cost-cutting plan. News agency Reuters has given this information by quoting a memo sent to the employees. The company announced plans to cut around 1,400 jobs in Sweden on Monday. While tech companies are laying off thousands of employees citing economic conditions, this will be the biggest layoff in the telecom industry.
In the memo, the Ericsson company’s CEO Borje Ekholm wrote, “The layoffs will be done in different countries depending on the rules and regulations there. In many countries, reductions in the number of employees have already been reported this week.”
Earlier, the company had reported less-than-expected earnings in the fourth quarter. The company announced this decision less than a month after the result. Sales of 5G devices have slowed down globally, even in high-margin regions like the US.
The telecom major plans to reduce its costs by $880 million by the end of 2023 amid a slump in demand for telecom equipment across the world.
Earlier, the company’s Chief Financial Officer Karl Melander told Reuters that the company was planning cost-cutting measures, which would reduce the number of consultants, real estate, and employees.
Referring to layoffs, Melander said, “It is different for all countries. In many places, it is just starting and we will take it unit by unit considering the labor laws of different countries.”
The company expects margin erosion within the network sector to continue through the first six months of 2023 but expects the impact of its cost-cutting initiatives to become apparent by the end of the second quarter.
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