Ericsson New Job Cuts to Layoff 1,200 in Sweden

Ericsson, or Telefonaktiebolaget LM Ericsson, revealed its plans to reduce its workforce in Sweden. The company is set to terminate 1,200 employees as the demand for 5G equipment slowed.

This would be the latest cut after it axed 8,500 workers, or eight percent of its total employees, last year. According to CNBC, based on a filing with the U.S. Securities and Exchange Commission at the end of 2023, Ericsson had 99,950 staff, and 10,744 were stationed in North America.

Cost-Cutting Move

Ericsson said on Monday, March 25, that it is downsizing as part of its broader scheme to cut costs this year. The telecom firm also aims to bolster efficiency amid its prediction of a challenging mobile networks business market this year.

The Swedish telecom firm said it had already started negotiations with workers’ unions regarding the layoffs. The company’s spokesman told CNBC via email that the primary goal of the talks is to manage the layoff process with exact fairness, respect, and professionalism. Ericsson further said it would make decisions in accordance with the Collective Bargain Agreement and Swedish labor law.

Ericsson’s Other Initiatives

The telecom company revealed that it will carry out other organizational cost-saving initiatives besides the job cuts. Some strategies include scaling down its consultants, trimming facilities, and simplifying processes. At the same time, it continues to execute its plans to achieve higher growth and reach long-term margin targets through business expansions, aiming to lead the mobile network industry.

“In line with managing lower volumes, Ericsson today announces proposed staff reductions in Sweden,” Ericsson said in a press release. “This measure is part of the global initiatives to improve the cost position, including headcount reductions, while maintaining investments critical to Ericsson’s technology leadership.”

Photo by: Ericsson Media Library