As part of global cost-cutting measures, Ericsson, the telecom networking company is set to reduce its 14,500-strong workforce in Sweden by 1,400. That means, the Company will axe 10 per cent of the jobs in Sweden.
The move comes after end of negotiations with union.
Ericsson, which has its headquarters in Stockholm, assures that the entire layoff process will be carried out in a professional manner with utmost respect to the impacted staff. The plan is to carry out the process via a voluntary programme.
With these job cuts, Ericsson will save costs in terms of the reduction in number of employees and facilities, decreased number of consultants and streamlining of processes. The Company fell short of expected earnings inQ4.
Similar workforce reduction may be expected in other locations as well, though an official confirmation is yet to come.
Earlier, the Company had revealed its intention to reduce costs by about $880 million by the end of 2023, amidst a global slowdown in markets, including North America.
This isn’t the first time Ericsson is resorting to layoffs. About six years ago, it had laid off thousands amidst huge losses.
In September 2022, the Company had notified its 400-member staff in Russia that they would be rendered jobless following the Company’s decision to wind up operations in the country. Nokia had already shut down operations in Russia in April 2022.
