(Boursier.com) — New massive workforce cuts in tech. They do not come this time from the United States but from Sweden where Ericsson plans to cut 8,500 jobs globally. The bulk of the cuts will take place in the first half of the year, although some will take place in 2024, a company spokeswoman told Bloomberg. “How workforce reductions will be handled will differ according to local country practices… In several countries, workforce reductions have already been communicated this week,” Reuters previously reported, citing a memo from the managing director, Borje Ekholm.
The cuts represent the equivalent of 8% of the workforce and are part of a plan set out in December to cut costs by 9 billion crowns ($862 million) by the end of 2023. Ericsson expects demand for its main telecommunications product market will remain stable this year. “We see potential to simplify and become more efficient across the business, especially with regard to structural costs,” the Ericsson spokeswoman said.
The Swedish telecom network maker reported a bigger-than-expected fall in fourth-quarter profit last month after some of its key 5G customers cut spending amid an uncertain economic environment. He had indicated on Monday that he was going to lay off 1,400 people in Sweden. It was without counting on the rest of the world.
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