Swedish telecommunications equipment giant Ericsson announced on Friday that it will cut 8,500 jobs worldwide as part of a cost-cutting plan as the group faces financial difficulties, AFP reported.
The group, which had 105,000 employees worldwide in 2022, reported disappointing full-year 2022 results due to a slowdown in operator spending on 5G amid a slowdown in the global economy and inflation.
According to Ericsson, the majority of the staff reductions will take place in the first half of 2023, with the remainder planned for 2024.
“We see potential for simplification and optimization within the company, especially in terms of structural costs,” Ericsson spokeswoman Jenny Guedelin told AFP.
“Unfortunately, we also have to consider labor. We believe that this will affect a total of 8,500 jobs,” she added.
These cuts come after an €820m savings plan was announced at the end of 2022.
In 2022, the group’s net profit fell by 39% to 6.2 billion crowns (about 561 million euros). (Photo: Dreamstime)
Source: Hot News
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