Ericsson To Cut 1,200 Jobs in Sweden Amid ‘Challenging’ Market
Swedish telecoms giant Ericsson blamed “challenging mobile networks market” and “further volume contraction” for job losses
Swedish telecoms giant Ericsson has confirmed more job cuts for its workforce in Sweden, which it blamed on a challenging market.
Ericsson this week announced a “headcount reduction of approximately 1,200 in Sweden” and has begun negotiations with union officials.
The job losses come on top of the headcount reduction announced this time last year.
In March 2023 Ericsson revealed it would cut 8,500 jobs around the world in a bid to slash costs, with 1,400 jobs going in its home country of Sweden.
Challenging market
The firm at the same time had also confirmed that it would settle US bribery charges and would once again pay a hefty financial penalty.
Fast forward a year, and Ericsson has this week confirmed that it will lay off about 1,200 employees in Sweden.
The firm had 99,950 employees worldwide at the end of 2023.
Ericsson said it “expects a challenging mobile networks market in 2024, with further volume contraction as customers remain cautious. In line with managing lower volumes, Ericsson today announces proposed staff reductions in Sweden.”
The firm is the headcount reduction is part of the global initiatives to improve the cost position, while maintaining investments critical to Ericsson’s technology leadership. It said that initiatives to increase operational efficiency will continue during 2024 but will not be announced separately.
“In addition to the headcount reduction, the cost saving initiatives cover various areas such as reduction of consultants, streamlining of processes, and reduced facilities, while Ericsson keeps executing on its strategy to achieve a higher growth trajectory and to reach the long-term margin targets, through leadership in mobile networks and a focused expansion into enterprise,” the company stated.
“As part of these ongoing global initiatives, Ericsson now announces a headcount reduction of approximately 1,200 in Sweden,” it said. “The Company has initiated negotiations with the unions.”
Recent business
Ericsson has been still winning some notable contracts of late.
In August 2023 Ericsson said it expects to report 11 billion Swedish crowns ($1bn, £800m) in intellectual property licensing income following the renewal of a patent cross-licensing agreement with Huawei.
Then in December 2023 AT&T said it would work with Ericsson to modernise its wireless network with Open Radio Access Networks (O-RAN) technology in a deal worth nearly $14 billion (£11bn) over five years.
Ericsson already provides about two-thirds of AT&T’s US network equipment.
Earlier this month BT Group confirmed that it will switch on its stand-alone 5G network, sometimes referred to as ‘true’ 5G, later this year. It comes after BT conducted a network slicing trial with Ericsson and Qualcomm.
