Ericsson announces layoffs of 1,400 employees to meet cost-cutting goals

Trade Algo reports that the company announced in a statement on Monday that it intended to cut jobs through an employee voluntary process after it had concluded negotiations with the unions, which the company discussed during negotiations.

‍

We are going to approach the reduction of headcount with utmost professionalism and respect, as we always have done with this in the past. The company says that additional details will always be communicated to the appropriate staff members first," Ericsson added.

‍

Among the cost-saving measures we have implemented, there have been reductions in consultants, streamlining of processes, and reducing the size of facilities, among others. Ericsson also informed that the reduction in headcount will be implemented, as previously announced, as well.

‍

Based on reports from sources quoted by Trade Algo, the Swedish company is planning to cut several thousand more jobs in other countries as a result of the reductions. Sweden is home to 14,500 employees who work for Ericsson.

‍

By the end of 2023, the Stockholm-based company intends to cut its costs by $880 million compared with the end of last year, according to a statement it made in December last year. Earlier this month, Ericsson reported disappointing earnings for the fourth quarter of its financial year.

‍

There have been thousands of layoffs in the recent months in the tech industry as a result of the company joining the list of tech companies that have done the same. There had been warnings from the company about the likely reduction in spending by customers in developed markets such as the US.