Swedish telecom big Ericsson mentioned on Monday it could lay off about 1,200 staff in Sweden as part of value cuts introduced earlier this yr, citing a “challenging” cellular networks market and decrease volumes in 2024.
After a couple of years of excessive demand for 5G tools, shopping for by telecom suppliers has slowed, prompting corporations equivalent to Ericsson and Nokia to put off hundreds of staff to avoid wasting prices.
“As previously stated, Ericsson expects a challenging mobile networks market in 2024, with further volume contraction as customers remain cautious,” the corporate mentioned in an announcement.
“In line with managing lower volumes, Ericsson today announces proposed staff reductions in Sweden,” it mentioned.
Ericsson will proceed its initiatives to extend operational effectivity throughout 2024, however is not going to make any separate statements on these, it added.
The firm mentioned the measure was a part of international initiatives to scale back prices, together with workers reductions, streamlining processes and decreasing consultants, “while maintaining investments critical to Ericsson’s technology leadership.”
It mentioned it had initiated negotiations with unions for a “headcount reduction of approximately 1,200 in Sweden.”
According to Ericsson, the corporate’s Swedish group employs round 14,000 individuals throughout all business areas.
Globally, Ericsson has round 100,000 workers.
Ericsson mentioned it was 26.1 billion kronor ($2.5 billion) within the pink final yr after making a 19-billion-kronor revenue in 2022.
The firm, which is in fierce competitors over 5G networks with Finland’s Nokia and Chinese high-tech agency Huawei, in February 2023 additionally launched a cost-cutting program that included eliminating 8,500 jobs.
Nokia mentioned final yr it may reduce its workforce by as much as 14,000 individuals, decreasing prices by as much as 1.2 billion euros by 2026.
Ericsson had informed Reuters in January it may have a look at additional value cuts this yr together with layoffs however with out giving a selected quantity.
Source: www.dailysabah.com
