Ericsson announced plans to cut jobs as part of cost-cutting measures.
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Ericsson The telecommunications company announced on Monday it would lay off about 1,200 employees in Sweden as demand for its 5G equipment slows.
The company said in a statement statement The job cuts are part of a wider cost-cutting plan this year, which will include more steps to improve efficiency, as “the mobile network market is expected to be challenging in 2024, with sales shrinking further as customers remain cautious.” Last year , Ericsson laid off 8,500 employees, accounting for about 8% of its total workforce, to reduce costs.
“Cost-saving measures cover various areas such as reducing consultants, streamlining processes and reducing facilities,” the company said, adding that it had begun talks with unions.
According to U.S. Securities and Exchange Commission filings, Ericsson had 99,950 employees as of the end of 2023, including 10,744 employees in North America.
“We have begun providing information and negotiating with the unions, and we will not preempt their results,” an Ericsson spokesperson wrote in an email to CNBC. “Our goal is to manage this in a fair, respectful, and professional manner. processes and in compliance with the collective bargaining agreement and Swedish labor law.”
Monday’s announcement comes as companies across the tech industry continue to lay off employees in large numbers. According to statistics, more than 200 technology companies have laid off more than 50,000 employees since the beginning of this year. Layoffs are for reference only. In 2023, nearly 1,200 technology companies laid off more than 260,000 employees.
Industry giant letter, Amazon, Yuan and Microsoft All of these companies have contributed to a series of layoffs this year, including Cisco, file signature, break and skyrocketinghoping to boost profits through focused spending and efficiency driven by artificial intelligence.
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