Ericsson plans to cut 8,500 jobs worldwide | CNN Business
Telecoms company Ericsson plans to cut 8,500 jobs worldwide in a bid to cut costs.
The company, one of the world’s largest 5G mobile network providers, has announced an initiative to cut costs by 9 billion kroner ($859 million) by the end of this year.
Among other measures, the plan “will also entail the need to address headcount,” an Ericsson ( ERIC ) spokesperson told CNN on Friday.
“We believe a total of 8,500 positions will be affected,” the spokesman said, noting that the bulk of the layoffs would take place in the first half of this year. “How cash reductions will be handled will vary according to local country practice.”
On Monday, Ericsson said it would cut about 1,400 jobs in Sweden. Those cuts are part of a total of 8,500, the spokesman said Friday.
Ericsson is the latest company to announce thousands of layoffs in recent weeks. Big Tech has been particularly hard hit after going through a hiring season during the pandemic. Media companies have also lost staff due to the decline in online advertising.
Ericsson last month reported lower-than-expected fourth-quarter core earnings as sales of 5G equipment slowed in markets such as the United States, Reuters reported.