Ericsson is planning to chop 8,500 staff, or about eight % of its 105,000-strong workforce.
The layoffs are stated to be coming worldwide largely within the first half of this yr, and a few presumably into the following.
“The way in which headcount reductions will likely be managed will differ relying on native nation apply,” CEO Borje Ekholm wrote in a memo to workers Friday, which was first reported by Reuters.
“In a number of nations the headcount reductions have already been communicated this week.”
These layoffs embody the 1,400 jobs the Stockholm-based biz on Monday said it will ditch in Sweden. We’re advised that is all a part of a roughly $900 million cost-slashing drive for the yr, which was introduced at an investor day in December.
The maker of 5G telecoms gear earlier said it skilled a slowdown in demand for its next-gen stuff in North America – the place it employs 12,000 individuals – and different areas. Its spending cuts are anticipated to make an affect on the enterprise’s funds as early as subsequent quarter.
“It’s our obligation to take this price out to stay aggressive,” Ekholm added in his missive. “Our largest enemy proper now could also be complacency.”
Ericsson’s annual revenue [PDF] slid to $1.8 billion in 2022, down 17 % from the earlier yr. Gross sales reached $26 billion, up 17 %.
So far as we will inform, it didn’t go on a wild hiring spree, considerably rising its ranks, in the course of the pandemic like different firms did. Thus far this yr, greater than 400 expertise firms have laid off at the very least 110,000 workers, in response to layoffs.fyi.
We have requested Ericsson for additional remark. ®
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