- Ericsson’s shrinking sales force it to improve its cost situation
- further details on layoffs and meeting locations unavailable
- Ericsson is flexibly negotiating with unions and prioritizing 5G development.
workforce reductions due to shrinking sales
The company, valued at $189 billion, revealed that it has commenced discussions with labor unions in light of the downsizing, which is triggered by a “further contraction in volumes as clients exercise caution.”
Ericsson stated, “In response to the need to manage reduced volumes, the company is today announcing potential workforce reductions in Sweden.” This action is part of a broader set of global efforts aimed at enhancing our cost structure, which includes a reduction in personnel, while continuing to invest in areas vital to maintaining Ericsson’s position at the forefront of technological innovation.
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prioritize 5G development
The company also indicated that efforts to boost operational efficiency will persist throughout 2024, but the specifics will not be publicly disclosed separately.
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There is no set schedule for the negotiations with the four involved unions, which will proceed at their own discretion, according to Ericsson spokesperson Ralf Bagner, who also mentioned that he cannot provide further information regarding the locations of the layoffs.
With nearly 100,000 employees across the globe, including approximately 14,000 in Sweden, Ericsson, established in 1876, has become the leading provider of LTE technology globally over the past decade, commanding a significant market share through its extensive network of LTE systems.
Ericsson is now focusing on its 5G system development and has launched efforts to position itself as a market leader, according to analysts. As of this month, it has 158 live 5G networks across the globe, spanning 67 countries.
