Ericsson will lay off 8,500 employees globally as part of its plan to cut costs

 

Ericsson, the Swedish telecom equipment maker, will lay off 8,500 employees globally as part of its plan to cut costs due to slowing demand in some markets, including North America. The company had already announced plans to cut about 1,400 jobs in Sweden earlier this week. Ericsson did not disclose which geographic regions would be most affected, but analysts predicted that North America would likely be hit the hardest, while growing markets like India would be less affected. The move is part of the company's plan to cut costs by 9 billion crowns ($880 million) by the end of 2023. Ericsson's Chief Executive, Borje Ekholm, stated that the company's biggest enemy right now may be complacency and that it is their obligation to take this cost out to remain competitive. Many telecom companies had increased their inventories during the height of the pandemic, which is now leading to slowing orders for telecom equipment makers. Ericsson's cost-cutting plan will involve reducing consultants, real estate, and employee headcount, according to their CFO, Carl Mellander. Nordic rival Nokia has not announced any plans to lay off employees.