- The move to reduce headcount is not its first. Ericsson in February of 2023 unveiled plans to lay off 8,500 employees as part of a move to cut costs by US$860 million.
- A slowdown in 5G investments predominantly in North America was a primary driver for Ericsson’s big drop in full-year 2023 margins, the company said in January.
Network and telecom technology developer Ericsson unveiled plans to cut 1,200 employees from its Sweden operations in the wake of a drop in sales and profits. This follows last year’s much larger cut of 8,600 employees.
The process
The Stockholm, Sweden-based developer of networking and communications technology said Monday in a press statement that it plans to lay off 1,200 of its Sweden-based employees as part of a move to cut costs.
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Reasons
“In line with managing lower volumes, Ericsson today announces proposed staff reductions in Sweden,” Ericsson said. “This measure is part of the global initiatives to improve the cost position, including headcount reductions, while maintaining investments critical to Ericsson’s technology leadership.
Other planned moves include reducing the number of consultants it works with, streamlining processes, and cutting back on facilities.
“As previously stated, Ericsson expects a challenging mobile networks market in 2024, with further volume contraction as customers remain cautious,” the company wrote.
The move to reduce headcount is not its first. Ericsson in February of 2023 unveiled plans to lay off 8,500 employees as part of a move to cut costs by US$860 million.
The move to rein in costs comes after Ericsson in January posted disappointing financial results for its fourth fiscal quarter and full fiscal year 2023.
North America sales took an especially hard hit, falling year-over-year by 43% in the fourth quarter and by 38% in the full year.
