Job cuts have come to the telecom gear industry. According to a report in news agency Reuters, Swedish telecom equipment maker Ericsson is cutting 1400 jobs. The job cuts at the company are said to be part of a broader plan to reduce costs globally. Ericsson had earlier announced plans to cut costs by 9 billion crowns ($880 million) by the end of 2023 as demand slows in some markets, including North America.
The 1400 layoffs have been announced in the company’s home country Sweden as of now. The job cuts amount to around 10 percent of Ericsson’s domestic employee base. Ericsson has reportedly been negotiating with its employee union in Sweden for months on how to handle cost cuts. Agreement has now been reached with Swedish unions on how to manage headcount reductions, a spokesperson said. The company intends to make the cuts through a voluntary programme. “Reducing headcount is never easy, and we will manage this with the utmost respect and professionalism,” a spokesperson for the company told telecoms.com. He further added that details are always communicated to the relevant staff first.
More layoffs likely in the coming days
Further job cuts, which may range in several thousands, are likely to be announced in other countries in the coming days. The report quotes sources close to the matter. The company’s global employee base is around 100,000 spread across all major markets. So far, there is no hint on where more job cuts will be made. Some reports say that North America may likely be next as it is one of the biggest markets where demand has slowed down.
The 1400 layoffs have been announced in the company’s home country Sweden as of now. The job cuts amount to around 10 percent of Ericsson’s domestic employee base. Ericsson has reportedly been negotiating with its employee union in Sweden for months on how to handle cost cuts. Agreement has now been reached with Swedish unions on how to manage headcount reductions, a spokesperson said. The company intends to make the cuts through a voluntary programme. “Reducing headcount is never easy, and we will manage this with the utmost respect and professionalism,” a spokesperson for the company told telecoms.com. He further added that details are always communicated to the relevant staff first.
More layoffs likely in the coming days
Further job cuts, which may range in several thousands, are likely to be announced in other countries in the coming days. The report quotes sources close to the matter. The company’s global employee base is around 100,000 spread across all major markets. So far, there is no hint on where more job cuts will be made. Some reports say that North America may likely be next as it is one of the biggest markets where demand has slowed down.
Job cuts at Ericsson are back after almost six years. Ericsson last made deep cuts in 2017 when the company laid off thousands of employees. The company then focused on research to pull itself out of losses.
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