Home News Business Ericsson layoffs: Company will cut 1,200 jobs in this country amid lower sales. More to follow?

Ericsson layoffs: Company will cut 1,200 jobs in this country amid lower sales. More to follow?

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Ericsson layoffs: Company will cut 1,200 jobs in this country amid lower sales. More to follow?

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Ericsson AB said that it will cut 1,200 jobs in Sweden amid lower orders and caution from mobile service providers, Bloomberg reported. The company-one of the world’s biggest providers of 5G networking equipment- will also cut costs by reducing facilities and the use of consultants. The company will streamline processes, it said in a statement, adding that it is in negotiations with unions over the cuts.

Ericsson layoffs: Ericsson headquarters with the company's logo in Stockholm, Sweden. Swedish telecoms equipment giant Ericsson said it was cutting 1,200 staff in Sweden, or about eight percent of its Swedish workforce as it faces a "challenging" market for mobile networks.(AFP)
Ericsson layoffs: Ericsson headquarters with the company’s logo in Stockholm, Sweden. Swedish telecoms equipment giant Ericsson said it was cutting 1,200 staff in Sweden, or about eight percent of its Swedish workforce as it faces a “challenging” market for mobile networks.(AFP)

The job layoffs represent about 8.6% of the Swedish headcount at the end of 2023 and come at a time when European telecom equipment makers Ericsson and Nokia Oyj struggle to rebound from a slowdown in spending across the mobile services industry.

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Ericsson warned earlier that its market outside of China would continue to decline in 2024 with investment by many operators remaining at “unsustainably low” levels. The company also contends with the emergence of “open radio access networks” which will let carriers more easily use multiple vendors and open up competition for network parts.

Last year, Ericsson announced that it would cut 8,500 staff, or about 8% of its total workforce while its rival Nokia Oyj said in October that it would cut as many as 14,000 jobs, or 16% of its workforce.


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