Ericsson to lay off 1,200 employees in Sweden

Ericsson Slashes Jobs in Sweden to Strengthen Cost Position and Navigate Challenging Mobile Network Market

Ericsson, a telecommunications equipment supplier based in Sweden, has announced plans to cut 1,200 jobs in the country, which amounts to approximately 8.6% of its workforce. This decision is a response to a challenging mobile network market forecast for 2024, with a further contraction in volume expected as customers exercise caution. The job cuts are part of a global effort to improve the company’s cost position by reducing the use of consultants.

The telecommunications industry has been impacted by decreased investment from North American telecom operators and slower growth in India’s 5G rollout. With around 14,000 employees in Sweden and nearly 100,000 worldwide, Ericsson is among the top three mobile network providers globally, alongside Huawei and Nokia.

Last year, Ericsson reported a significant net loss of 26.1 billion Swedish crowns (2.3 billion euros) due to write-downs related to the accounts of US company Vonage and restructuring charges. These challenges have prompted the company to take proactive measures to streamline operations and remain competitive in the evolving market.

As Ericsson addresses these changes, it is essential for the company to adapt and innovate to align with industry trends and customer needs. By focusing on cost efficiency and strategic initiatives, Ericsson aims to navigate the dynamic telecommunications landscape and position itself for long-term success.

In summary, Ericsson is cutting jobs in Sweden as part of its global effort to reduce costs and improve its cost position by reducing consultancy usage. The decision was prompted by challenging market conditions that have affected the telecommunications industry globally. Despite this challenge, Ericsson remains committed to adapting and innovating to stay ahead in an evolving market while maintaining its competitive edge.

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