Joining a growing list of tech firms that have sacked thousands of employees in recent months, Ericsson has announced to lay off at least 1,400 employees or 10 per cent of its workforce in Sweden after negotiating with unions. The telecom networking company issued a statement and asserted that the company intended to conduct the job cut process through a voluntary programme after closing negotiations with employee unions.
Read Ericsson’s Statement on Recent Layoffs
“Reducing headcount is never easy, and we will manage this with the utmost respect and professionalism. Further details are always communicated to the relevant staff first,” Ericsson said.
“The cost savings cover various areas such as reduction of consultants, streamlining of processes, reduced facilities, etc. As previously announced, it will also include head-count reduction,” Ericsson added.
Employees in Other Countries Likely to be Hit
The reductions in Sweden are likely to be followed by several thousand more job cuts in other countries, according to Reuters. At present, Ericsson employs 14,500 people in Sweden.
Earlier last year, the company had announced it was aiming to slash costs by $880 million by the end of 2023. Last month, Ericsson missed expectations for its fourth-quarter earnings. It had warned of reduced spending from customers in the US and other developed markets.
