- Swedish telecoms giant Ericsson is laying off 8,500 workers as part of cost-cutting measures, the company confirmed to CNBC on Friday.
- It will affect approximately 8% of Ericsson’s 105,529 employees worldwide.
- A company spokesperson said that most of the layoffs will take effect in the first half of 2023, but they may also extend into 2024.
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Swedish telecoms giant Ericsson is laying off 8,500 workers as part of cost-cutting measures, the company confirmed to CNBC on Friday.
Reuters I mentioned earlier about layoffs, which will affect nearly 8% of them Work crew of 105,529 worldwide. The company employs approximately 11,994 people in North America, according to its website.
An Ericsson spokesperson said the cuts were part of “accelerating structural cost reduction efforts” as announced during the company’s Capital Markets Day on December 15. The spokesperson said most of the layoffs will take effect in the first half of 2023, but they may also extend into 2024.
“The manner in which staff cuts will be managed will vary according to local practices in the country,” the spokeswoman said in a statement. “Our aim is to manage the operation in each country fairly, respectfully and professionally and in line with local labor legislation. Any impact on staff will be communicated to them first.”
The company is looking to cut costs at a running rate of SEK 9 billion, or about $860 million, by the end of 2023. Ericsson said it expects to start seeing the impact of the cost savings in the second quarter of this year.
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