Amidst a slowdown in spending across the mobile services industry, European telecom equipment giants Ericsson and Nokia Oyj have struggled to regain momentum.
Ericsson has cautioned that its market outside of China is expected to continue declining this year. Mobile carriers are cutting back on network spending due to the challenging competitive landscape in Europe, which is impacting their return on investments. The companies are also facing barriers to adapting to the rise of ‘open radio access networks.’
Earlier, Ericsson had declared its plan to reduce its workforce by 8,500 employees, which amounts to nearly 8 per cent of its total workforce. Similarly, its competitor Nokia Oyj had announced in October its intention to cut up to 14,000 jobs, equivalent to 16 per cent of its workforce.
