Ericsson just lately introduced it’s planning to chop 8,500 jobs as a part of its cost-cutting measures.
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Ericsson introduced on Monday that it’s going to lay off round 1,200 staff in Sweden because the telecom firm faces slowed demand for its 5G gear.
The corporate stated the downsizing is a part of a broader cost-cutting plan this yr that may embrace extra efforts to spice up effectivity. Final yr, the corporate laid off 8,500 staffers, or about 8% of its workforce, to chop prices.
“The fee saving initiatives cowl numerous areas comparable to discount of consultants, streamlining of processes, and decreased amenities,” Ericsson stated in an announcement Monday, including that it had begun negotiations with unions.
Ericsson had 99,950 staff, together with 10,744 staff in North America, on the finish of final yr, in keeping with an SEC submitting.
Monday’s announcement comes as firms throughout the tech business proceed to slash jobs in giant numbers. Greater than 50,000 staff have been laid off from over 200 tech firms for the reason that begin of the yr, in keeping with Layoffs.fyi. In 2023, greater than 260,000 staff had been let go from nearly 1,200 tech firms.
Trade giants Alphabet, Amazon, Meta and Microsoft have all contributed to the flurry of job cuts this yr, together with firms together with Cisco, DocuSign, Snap and Zoom, within the hopes of elevating earnings by centered spending and effectivity fueled by synthetic intelligence.
