Chinese telecom equipment provider, ZTE, has reportedly initiated layoff procedures across multiple departments, including wireless research institutes and terminals, affecting several employees.
According to China Star Market, certain workers were informed of their terminations prior to the end of February. The company’s wireless research institute and terminal business department appear to be the most affected.
ZTE justified the terminations as a means to address last year’s over-recruitment. A ZTE representative, however, called the layoffs a normal personnel adjustment and reshuffle that takes place every year.
The job cuts could also potentially affect senior employees who have been with the firm for over a decade.
The company reported operating income of ¥92.559 billion ($13.5 billion) during the first three quarters of 2020, with a net profit of ¥6.82 billion, up 16.52% year-on-year. ZTE announced plans to decrease the holdings of its chairman of the board of supervisors on February 17th.
Ericsson, a leading telecom gear maker, has announced that it plans to cut about 1,400 jobs in Sweden as part of a broader cost-cutting plan.
This move is a result of slowing demand in certain markets, including North America, and is part of the firm’s strategy to reduce costs by 9 billion crowns ($880 million) by the end of 2023. The job cuts in Sweden are expected to be carried out through a voluntary program.
Ericsson had been in negotiations with its employee union in Sweden for several months on how to handle cost cuts. However, an agreement has now been reached with the union on how to manage headcount reductions. A company spokesperson has confirmed the development, stating that the company intends to make the cuts through a voluntary program.
The technology industry, which witnessed a boom in the aftermath of the pandemic, has faced a challenging end to 2022. As the sector braces for a period of slower growth, companies across the board have been forced to cut thousands of jobs to address over hiring during the Covid era.
The wave of layoffs has not spared even the biggest names in tech, including Amazon, Microsoft, and Google parent Alphabet, along with numerous startups and mid-sized firms. In total, 312 technology companies have laid off 97,020 employees, according to experts.
According to two sources familiar with the matter, the job cuts may number in the thousands. Ericsson had last undergone a significant round of job cuts in 2017, where it had laid off thousands of employees and focused on research to help the company recover from losses.
The company is expected to announce several more job cuts in other countries in the coming days.
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