Approximately 1,200 Ericsson staff in Sweden will be laid off, with negotiations initiated with unions, the company announced today (25 March).
Ericsson said it expects a challenging mobile networks market in 2024 with customer volume contraction as customers remain cautious.
To manage lower customer volumes, Ericsson is implementing staff reductions in Sweden as part of global initiatives to improve cost positions.
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This reduction follows previous global cost-cutting measures, including 1,400 job cuts in Sweden and 8,500 globally in 2023.
Reduced demand for 5G products has necessitated cost-cutting measures in companies like Ericsson and Nokia.
Ericsson said that it aims to increase operational efficiency through measures such as reducing the number of consultants, streamlining processes, and reducing facilities.
Ericsson had nearly 100,000 employees at the end of the previous year, according to an annual report.
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By GlobalDataEricsson’s workforce reduction continues the ongoing trend of tech industry layoffs, with several companies, including Google, Microsoft, Snapchat and eBay, all conducting significant layoffs.
According to data from layoffs.fyi, over 219 tech companies have already conducted mass layoffs in 2024 resulting in around 50,000 jobs lost.
Strategic shifts, macroeconomic difficulties and the race to AI all continue to be major reasons behind these layoffs.
