Ericsson announces layoffs, plans to fire 1400 employees globally

As part of a larger strategy to slash costs globally, telecom equipment manufacturer Ericsson announced on Monday that it would eliminate roughly 1,400 jobs in Sweden.

A reduction in costs of 9 billion crowns ($880 million) by the end of 2023 had been previously stated by the corporation due to a slowdown in demand in some countries, particularly North America. According to two persons familiar with the situation, there will undoubtedly be announcements of thousands more job losses in other nations in the upcoming days. The last time Ericsson made significant cuts was in 2017, when it let go of thousands of workers and concentrated on research to turn the firm around.

Months of negotiations on how to handle cost cuts took place between the corporation and the Swedish labour organisation. The company needs to implement the staff reductions through a voluntary programme, the spokeswoman said, adding that agreement has now been reached with Swedish unions on how to manage them.