Swedish telecommunications large Ericsson mentioned Tuesday that it’s stepping up its cost-cutting program because it expects a “choppy environment” this 12 months after earnings fell within the first quarter.
The telecom gear maker will now scale back prices by 11 billion Swedish kronor ($1.1 billion) in 2023, saying it discovered a further 2 billion kronor in financial savings.
Ericsson introduced in February that it will slash 8,500 jobs worldwide, or 8% of its workforce.
The Swedish group is locked in a battle with Finnish rival Nokia and China’s Huawei for 5G networks. Still, it famous that its clients – cellular operators – have slowed the deployment of such gear.
“We continue to see a choppy environment during 2023 with poor visibility,” Ericsson mentioned in its quarterly earnings assertion.
Ericsson’s web revenue fell 46% to 1.6 billion kronor within the January-to-March interval.
Sales rose 14% however have been flat when adjusting figures to account for foreign money exchanges and different parameters.
Ericsson mentioned it expects clients “to remain cautious” with investments and proceed to regulate their inventories within the second quarter.
“We expect the slower growth we saw in Q1 (the first quarter), caused by the slower global economy, to continue in Q2,” Ericsson added.
Graft allegations in Iraq have additionally shaken shareholder confidence within the firm.
Ericsson mentioned final month that it will pay a $207 million high-quality for breaching a cope with U.S. authorities by not disclosing an investigation of suspected bribes to the Islamic State group in Iraq.
Source: www.dailysabah.com
