Ericsson introduced it’s planning to chop jobs as a part of its cost-cutting measures.
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Ericsson introduced on Monday that it’ll lay off about 1,200 workers in Sweden because the telecommunications firm faces slowed demand for its 5G gear.
The corporate stated the downsizing is a part of a broader cost-cutting plan this yr that can embody extra efforts to spice up effectivity. Final yr, the corporate laid off 8,500 staffers, or about 8% of its workforce, to chop prices.
“The fee saving initiatives cowl numerous areas resembling discount of consultants, streamlining of processes, and diminished services,” Ericsson stated in a assertion on Monday, including that it had begun negotiations with unions.
Ericsson had 99,950 workers, together with 10,744 staff in North America, on the finish of final yr, based on a U.S. Securities and Alternate Fee submitting.
Monday’s announcement comes as firms throughout the tech business proceed to slash jobs in massive numbers. Greater than 50,000 staff have been laid off from over 200 tech firms because the begin of the yr, based on Layoffs.fyi. In 2023, greater than 260,000 staff had been let go from virtually 1,200 tech firms.
Business giants Alphabet, Amazon, Meta and Microsoft have all contributed to the flurry of job cuts this yr, together with firms together with Cisco, DocuSign, Snap and Zoom, within the hopes of elevating earnings by centered spending and effectivity fueled by synthetic intelligence.
