Ericsson Announces 1,200 Job Cuts In Sweden Amid Lower Sales

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New Delhi: Ericsson, a Swedish multinational networking and telecommunications company has announced plans to reduce its workforce by 1,200 jobs in Sweden. This decision comes in response to decreased orders and caution expressed by mobile service providers, as reported by Bloomberg.

As one of the largest suppliers of 5G networking equipment globally, Ericsson AB intends to trim expenses by downsizing facilities and limiting consultant usage. In a statement the company stated that they plan to optimize operations and are currently in discussions with unions regarding the workforce reductions. ()

In addition, Ericsson remains committed to implementing its strategy aimed at attaining greater growth and meeting long-term margin goals. This involves maintaining a leadership position in mobile networks while strategically expanding into the enterprise sector. ()

According to its annual report for 2023, released earlier this month, the employee count decreased to 99,952 from 105,529. This decline was primarily linked to efforts aimed at reducing costs.

The job cuts amount to approximately 8.6 percent of the Swedish workforce at the close of 2023. This reduction occurs amidst challenges faced by European telecom equipment manufacturers Ericsson and Nokia Oyj, who are striving to recover from a slowdown in expenditure within the mobile services sector.