News
The news follows the slew of job cuts from both vendors and operators amid turbulent market conditions
Ericsson has announced this week that it is set to cut 1,200 jobs in its home market of Sweden as part of wider cost-cutting measures announced earlier this year.
The company currently employs around 15,000 people in its home country, with its global workforce totalling around 100,000 staff.
In a press release published today, Ericsson confirmed that the job cuts are part of the “global initiatives to improve the cost position, including headcount reductions, while maintaining investments critical to [Ericsson’s] technology leadership”.
The statement also notes that other cost-cutting measures will include “reduction of consultants, streamlining of processes, and reduced facilities”.
In a memo sent to employees last year that was seen by Reuters, the company announced that it will lay off 8,500 employees, around 8% of total global employees. CEO Borje Ekholm said at the time that “It is our obligation to take this cost out to remain competitive”.
Additional cuts are hardly surprising, with the current turbulent economic conditions leading to market uncertainty worldwide, and therefore a reduction in spending on telecoms equipment.
This downturn has not only hit Ericsson. The vendor’s Scandinavian rival Nokia is in fact planning even larger scale job cuts, saying last year that they would seek to cut 14,000 roles over the next two years.
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