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8,500 employees will be cut from the workforce

by SuperiorInvest

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Swedish telecommunications company Ericsson will lay off 8,500 employees as part of cost-cutting measures, the company confirmed to CNBC on Friday.

Reuters previously reported layoffs that will affect roughly 8% of its workforce personnel of 105,529 worldwide. The company employs about 11,994 people in North America, according to their website.

An Ericsson spokesman said the cuts were part of an “acceleration of structural cost reduction efforts” as announced during the company’s Capital Markets Day on 15 December. The spokesman said most of the layoffs would take effect in the first half of 2023, but could also extend into 2024.

“The method of reducing staff numbers will vary depending on local country practices,” the spokesperson said in a statement. “Our aim is to manage the process in each country fairly, respectfully, professionally and in accordance with local employment legislation. Any impact on employees will be communicated to them first.”

The company aims to cut costs at an ongoing rate of 9 billion Swedish crowns, or about $860 million, by the end of 2023. Ericsson expects to see the effect of cost savings in the second quarter of this year.

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