Trends
Ericsson to lay off 1,200 workers in Sweden
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 communicatio…
Headline
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…
Context
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 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.
Evidence
Pending intelligence enrichment.
Analysis
Also read: Dutch chipmaking firm VDL to build semiconductor parts factory in Vietnam “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.
Key Points
- 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.
Actions
Pending intelligence enrichment.
