Ericsson to implement job cuts in North America amid global workforce reduction

The memo acknowledged the self-perform capability's importance in boosting local service during the 5G peak, setting new standards but due to the market downturn, transitioning to external providers is now necessary


Ericsson, the multinational technology company, has announced plans to carry out job cuts in North America affecting up to 750 individuals, later this year. This decision comes as part of the company’s global workforce reduction initiative, which was officially unveiled in February and involves a total reduction of 8,500 jobs worldwide.

In a memo issued by the people operations team, Ericsson communicated that, starting from October 1, 2023, all of its field services in the United States will be handled by ‘external providers’. The separation date for this transition is set for September 29, 2023, as reported by DCD.

The memo emphasised that despite this change, Ericsson’s commitment to delivering network services, including site design, engineering, continuous preemptive support, and network optimisation, will remain unchanged.

The memo also acknowledged the critical role of Ericsson’s self-perform capability, which proved instrumental in accelerating local service delivery capabilities during the peak of the 5G cycle. The company’s dedication to maintaining quality and ensuring safety set a new standard for tower technicians in the US. However, due to the recent downturn in market demand, the cost of sustaining this unique capability can no longer be justified, prompting the decision to transition to external providers.

As of now, Ericsson employs more than 11,500 workers in North America and boasts a global workforce of over 1,03,000 professionals.

As Ericsson proceeds with these changes, it aims to emerge stronger, better positioned to meet customer needs, and equipped to deliver innovative solutions in the dynamic telecommunications industry.

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