Ericsson, a telecom company that provides equipment for 5G networks, announced on Friday that it plans to reduce costs by cutting 8,500 jobs worldwide, which is 8% of its workforce. The layoffs will take place in 2023 and 2024 as part of the company’s effort to save approximately $857 million by the end of 2023. Although Ericsson did not specify which regions will be most affected, it employs over 105,000 individuals worldwide, including in North America.
Ericsson has stated that it will manage headcount reductions in accordance with local labour laws and practices, and with professionalism, respect, and fairness. It is one of many technology companies to announce mass layoffs in recent months, following a trend that includes companies such as Amazon, Meta, and Microsoft, which have cut thousands of jobs and reduced costs after the pandemic-related hiring sprees.
Ericsson announced in December of last year that it would aim to reduce costs by the end of 2023. The company anticipates seeing results from its cost-cutting efforts, including layoffs, in the second quarter of this year. In addition to job reductions, Ericsson is also focusing on its service delivery, supply, real estate, and IT, and has already initiated and accelerated several initiatives to assist it in reaching its objectives, according to a spokesperson.