Telecom maker Ericsson to cut 8% of its global workforce

Swedish telecoms equipment maker Ericsson has announced it is cutting 8% of its global workforce as it looks to cut costs

By means ofThe Associated Press

February 24, 2023, 2:05 PM

STOCKHOLM — Swedish telecoms equipment maker Ericsson said on Friday it was cutting 8% of its global workforce as it looks to cut costs, the latest in a wave of layoffs. technology company.

The Stockholm-based company, which provides equipment for high-speed 5G wireless networks, said it expected to lay off 8,500 employees this year and through 2024 as part of a strategy to reduce its spending. of 9 billion Swedish kronor ($857 million) by the end of this year.

“Our goal is to manage the process in each country with fairness, respect, professionalism and in accordance with local labor laws,” Ericsson said in a statement.

The company in December announced its drive to cut costs. It said Friday that it expected to see second-quarter results as it simplified and became more efficient, including cutting its workforce of nearly 105,000 people worldwide.

“We are also working on our service delivery, supply, real estate and IT. We have started to implement and accelerate various initiatives to help us achieve” the goal of cost reduction, Ericsson said.

It comes as tech companies from Spotify and Amazon to Microsoft and Facebook parent Meta have each cut thousands of jobs in recent months. They’ve been on hiring sprees for the past few years as demand for their products, software and services surged with millions of people working and studying remotely during the COVID-19 pandemic.

Last month, Ericsson reported revenue of $1.86 billion and revenue of $26.93 billion for 2022.

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