Why is Ericsson cutting 1,600 jobs in Sweden?

Ericsson is reducing its workforce by 1,600 employees in Sweden as part of a strategy to lower operational costs and improve financial margins.

What is Ericsson's financial situation?

Ericsson has been working to improve margins in a difficult market. While facing weak demand, it reported a significant profit increase last year after divesting a business unit.

Are these the first job cuts at Ericsson?

No, Ericsson announced a global plan to cut 8,500 jobs in 2023, and further cuts have occurred since then in various countries.

Home / Business and Economy / Ericsson Slashes 1,600 Jobs in Sweden

Ericsson Slashes 1,600 Jobs in Sweden

15 Jan

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Summary

Ericsson plans to cut 1,600 jobs, impacting its Swedish workforce.
This reduction is part of a broader strategy to lower operational costs.
Negotiations with Swedish unions have commenced regarding the layoffs.

Telecommunications giant Ericsson AB announced on Thursday its intention to lay off approximately 1,600 employees, a move predominantly targeting its Swedish workforce. The company has officially commenced negotiations with labor unions in Sweden concerning these significant workforce reductions. This action is a component of a larger, ongoing initiative by Ericsson to curtail operational expenses and bolster its financial performance.

These planned cuts signify a continuation of Ericsson's efforts to manage costs in a demanding telecommunications equipment sector. The company, alongside competitors like Nokia, has faced years of subdued demand as anticipated carrier investments in 5G technology have not fully materialized. These new layoffs follow a global job-cutting plan initiated in 2023, which initially aimed to reduce 8,500 positions.

Stockholm-based Ericsson, which employs roughly 14,500 individuals in Sweden, indicates these cuts could represent up to 11% of its domestic staff. The company's recent financial performance showed a substantial increase in third-quarter profits last year, partly attributed to the divestment of its Iconectiv business. Despite these challenges, shares in Ericsson saw a slight increase in early trading.