Telecom giant Ericsson plans to lay off roughly 1,200 employees

Telecom giant Ericsson plans to lay off roughly 1,200 employees in Sweden as part of a broader cost-cutting effort in response to a sluggish mobile network market. The move comes after a challenging year for Ericsson and its competitors, like Nokia, who have grappled with slowing 5G equipment sales, particularly in North America and India.

Ericsson foreshadowed potential staff reductions in January, citing the need for further cost cuts. Negotiations with unions regarding the specific number of layoffs and potential savings are ongoing. The company anticipates a difficult 2024 for the mobile network industry, with customers remaining cautious on 5G spending.

Analysts predict further industry-wide layoffs throughout the year and potentially into 2025 due to ongoing challenges in the mobile infrastructure market. Initial expectations for a rapid 5G rollout haven’t materialized, with some analysts calling it a “slow-burner.”

Beyond the Swedish layoffs, Ericsson is implementing additional cost-saving measures such as reducing reliance on consultants, streamlining internal processes, and optimizing facilities. The company employed nearly 100,000 individuals at the end of 2023.

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