Ericsson to lay off 1,600 employees in Sweden
What's the story
Ericsson, a leading player in the telecom equipment industry, has announced plans to lay off around 1,600 employees from its Swedish unit. The company has already notified the Swedish Public Employment Service and started negotiations with relevant trade unions. These job cuts are part of a broader strategy by Ericsson to improve its global cost position and remain competitive in the market.
Market response
Strategy amid market challenges
The layoffs are part of Ericsson's efforts to cut costs and improve margins in a challenging telecom equipment market. The company has been facing weak demand for years, as the expected carrier spending on 5G technology has not materialized. Despite these challenges, Ericsson remains committed to maintaining investments critical to its technology leadership and executing a strategy for high-performing, programmable networks that enable differentiated services and new monetization opportunities.
Past layoffs
Ericsson's history of job cuts
This isn't the first time Ericsson has resorted to job cuts. In 2023, the company announced a global plan to cut 8,500 jobs or 8% of its workforce. The trend continued into last year with hundreds of staff being laid off in Spain and Canada. Over the past three years, Ericsson has been gradually reducing its headcount to maintain profitability amid a slowdown in 5G spending and US tariffs.