Ericsson, the telecommunications company, announced plans on Monday to lay off approximately 1,200 employees in Sweden due to slowed demand for its 5G equipment, according to a report by CNBC. This downsizing initiative is part of a broader cost-cutting strategy for the year, as Ericsson foresees a challenging mobile networks market in 2024, with further reductions in volume due to customer caution.
Last year, Ericsson implemented cost-saving measures by laying off 8,500 employees, which accounted for about 8% of its workforce. The CNBC report explains that the company aims to enhance efficiency through various measures such as reducing the number of consultants, streamlining processes, and optimizing facilities. Ericsson has commenced negotiations with unions regarding these layoffs.
As of the end of 2023, Ericsson had 99,950 employees globally, including 10,744 in North America. The…
