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Telecom giant Ericsson to cut up to 8,500 jobs globally

By Nithya Bose in UK Business News, posted February 27, 2023

Ericsson will axe 8,500 jobs in a second round of layoffs.

The Swedish telecom giant said cuts would take place this year and next year as it seeks to trim costs due to a slowdown in sales.

The news comes just days after the company announced plans to slash around 1,400 jobs in Sweden.

The cuts would see around eight percent of global staff leave the company.

Ericsson said: “Our aim is to manage the process in every country with fairness, respect, professionalism and in line with local labour legislation.”

The company revealed plans to cut spending by $861 million by the the end of 2023 by utilizing fewer consultants, shutting facilities, and streamlining operations late last year.

The corporation has invested in next-generation 5G wireless technology.

But its CEO, Börje Ekholm, said last month that the 5G rollout has been slower than projected.

Companies in the tech and other sectors have been laying off workers and cutting expenses.

Big companies, like Google parent Alphabet and Amazon, have announced thousands of job cuts as growth has slowed or demand for their products has waned.

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Jenny Hedelin, an Ericsson spokeswoman, said various roles would be eliminated but didn’t specify which ones.

Ericsson said last month that North American telecom operators have delayed ordering new 5G gear due to economic concerns.

Cellular operators in the US, China, the Middle East, and elsewhere have built 5G networks, often using Ericsson equipment, to provide users with better wireless speeds.

Yet, several early adopters of 5G wireless networks have reported that they have not experienced a speed-up.

Source: The Wall Street Journal