Ericsson To Layoff 8,500 Employees

Ericsson is following in the footsteps of other tech businesses by cutting 8,500 positions in a bid to reduce expenses in the face of uncertain economic times. With a global workforce of 106,000, the company is seeking to slash costs by $880 million by 2023, leading to layoffs of 8% of their staff.

What’s going on:

Ericsson, the telecommunications equipment company (and one of the world’s biggest providers of 5G mobile networks), is slashing 8,500 positions from its staff in a bid to cut costs — joining the ranks of other corporations who have taken similar action as economic uncertainty looms.

Why it matters:

With its global workforce of approximately 106,000, the company is looking to cut costs by $880 million by the end of 2023, which has led to a round of layoffs affecting 8% of its staff. This includes the 1,400 positions previously announced this week in Sweden, where Ericsson is headquartered.

How it’ll impact the future:

At the peak of the pandemic, many telecom companies amped up their inventories, causing a decline in demand for telecom equipment makers.

Ericsson recently released lower-than-anticipated fourth-quarter core earnings, citing slower 5G equipment sales in major markets such as the United States. Big Tech has announced thousands of layoffs in the past few weeks, which is a drastic reversal from their hiring spree during the pandemic.

Ericsson CFO Carl Mellander previously announced that to cut costs, they would be reducing consultants, real estate, and personnel.