Ericsson joins the layoffs; will cut more than 8 thousand employees
Telecommunications equipment manufacturer Ericsson to lay off 8,500 employees around the world as part of his plan to reduce costsaccording to a memo sent to employees.
It is worth mentioning that Ericsson’s move would be the biggest layoff in the telecommunication industry.
As we have mentioned in other informative notes of The Truth Newstechnology companies like Microsoft, Meta and Alphabet they are also registering layoffs of thousands of employees citing economic conditions.
Why 8 thousand 500 employees Ericsson will be out of a job
Staff reductions have already been reported in several countries
“How staff reductions will be managed will differ depending on local country practice,” Chief Executive Borje Ekholm wrote in the memo.
“In several countries, staff reductions have already been reported this week,” he said.
On Monday the company, which employs more than 105,000 people worldwide, announced plans to cut some 1,400 jobs in Sweden. While Ericsson did not disclose which geography would be hit hardest, analysts had forecast that North America would likely be the most affected and growth markets such as India the least.
The company said in December it would cut costs by 9 billion kroon ($880 million) by the end of 2023 as demand slows in some markets, including North America.
“It is our obligation to eliminate this cost to remain competitive,” Ekholm said in the memo. “Our biggest enemy right now may be complacency.”
Many telecom companies increased their inventories during the height of the pandemic, which is now causing a decline in orders from telecom equipment manufacturers.
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Verizon (VZ.N), one of the largest telecommunications companies, plans to spend between $18.25 billion and $19.25 billion this year, down from a capital spending budget of $23 billion last year.
Ericsson’s chief financial officer, Carl Mellander, had previously told Reuters that the cost cuts would mean reducing the number of consultants, real estate and employees. Nordic rival Nokia has not announced any plans to lay off employees.
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