Ericsson will lay off 8,500 employees worldwide – 02/24/2023 – Tech

Telecommunications equipment maker Ericsson will lay off 8,500 employees worldwide as part of its cost-cutting plan, said a memo sent to employees and seen by Reuters.

How the headcount reductions are managed will depend on local country practice, company CEO Borje Ekholm wrote in the memo.

According to him, in several countries the staff reductions were communicated this week.

On Monday (20), the company, which employs more than 105,000 people worldwide, had announced plans to cut about 1,400 jobs in Sweden.

While Ericsson did not disclose which geographic region would be most affected, analysts predicted North America would likely see the most cuts and growth markets such as India the least affected.

The company said in December it will cut costs by SEK 9 billion ($880 million) by the end of 2023 as demand slows in some markets, including North America.

“It is our obligation to reduce this cost to remain competitive,” Ekholm said in the memo. “Our biggest enemy right now may be complacency.”

Carl Mellander, Ericsson’s chief financial officer, had previously told Reuters that the cost cuts would involve reducing consultants, real estate and headcount.

Nordic rival Nokia has not announced plans to lay off staff.