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Ericsson announced on Thursday that it plans to cut around 1,600 jobs in Sweden, reinforcing its recent cost-saving measures to help it navigate a prolonged downturn in telecom spending.
As of December 31, the group employed around 90,000 people globally, of which about 12,600 in Sweden. That compares with nearly 100,000 employees three years ago, News.Az reports, citing Reuters.
Ericsson has been steadily reducing headcount over the past three years to maintain profitability as it grappled with a slowdown in 5G spending and the impact of U.S. import tariffs.
“The notice in Sweden is one of several global initiatives aimed at improving the company’s overall cost structure to maintain important investments that will secure our competitiveness and technology leadership,” a company spokesperson told Reuters in an emailed statement.
Ericsson has submitted a notice to the Swedish Public Employment Service and initiated negotiations with relevant trade unions.
“Initiatives to increase operational efficiency will continue across the group but will not be announced separately,” it said in a statement.
In Sweden, where Ericsson is based, the company had already announced plans to lay off 1,400 employees in 2023 and 1,200 in 2024.