Swedish telecom equipment giant Ericsson has announced it will cut 8,500 jobs worldwide as part of a cost-cutting plan as the group faces financial difficulties (TT News Agency/AFP/Archives/Lars SCHRODER )
Swedish telecom equipment giant Ericsson announced on Friday that it will cut 8,500 jobs worldwide as part of a cost-cutting plan as the group faces financial difficulties.
The group, which employed 105,000 people worldwide in 2022, had published disappointing annual results for the year 2022, due to the slowdown in 5G spending by operators, amid a slowing global economy and inflation. .
According to Ericsson, the majority of job cuts will be implemented in the first half of 2023, with the remaining cuts scheduled for 2024.
“We see potential to simplify and become more efficient in the business, especially in terms of structural costs,” Ericsson spokeswoman Jenny Hedelin told AFP.
“Unfortunately, the workforce will also have to be taken into account. We believe that a total of 8,500 positions will be affected,” she explained.
These deletions come after the announcement at the end of 2022 of a savings plan of 820 million euros.
In 2022, the group had recorded a 39% drop in net profit, to 6.2 billion crowns (around 561 million euros).
© 2023 AFP
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