Swedish multinational networking and telecommunications company Ericsson will reportedly lay off 8,500 workers as part of its cost-cutting measures.
The company has revealed intentions to eliminate approximately 1,400 jobs within Sweden.
With this, Ericsson has now entered the ranks of major technology companies, such as Google, Meta, and Microsoft, which have disclosed plans to lay off thousands of employees in response to challenging economic circumstances.
Ericsson has a global workforce exceeding 105,000, the company has not yet specified which regions will be most impacted by the layoffs. However, analysts have previously forecasted that North America is likely to bear the brunt of the cuts, while rapidly expanding markets like India are expected to be affected the least, according to the report.
“The way headcount reductions will be managed will differ depending on local country practice,” Chief Executive Borje Ekholm reportedly wrote in the memo.
“In several countries the headcount reductions have already been communicated this week,” he said.
The company said in December it would reduce costs by $880 million by the end of 2023 as demand slows in some markets, including North America.
“It is our obligation to take this cost out to remain competitive,” Ekholm said in the memo. “Our biggest enemy right now may be complacency.”
Last month, tech giant Google disclosed plans to cut 12,000 jobs. In a letter to employees, CEO Sundar Pichai mentioned that the company had experienced significant growth periods over the past two years. To sustain and enhance that growth, Google employed individuals based on a different economic situation than the current one they are facing. He hinted that the tech giant is going through challenging economic phases.
Microsoft also declared it would reduce its staff by 10,000. CEO Satya Nadella noted that customers accelerate their digital spending during the pandemic but now they were optimising their digital spending to do more with less.
