Sweden’s Ericsson Cuts 1,200 Jobs In ‘Challenging’ Market

(CTN News) – Ericsson announced on Monday that it was eliminating 1,200 people in Sweden, or 8.6 percent of its Swedish workforce, in the face of a “challenging” market for mobile networks that is facing the telecoms giant.

There is no doubt that the mobile network market in 2024 will present a challenge to mobile operators, with further volume contraction resulting from the cautious attitude of customers.

As part of the company’s plan to manage the lower volume of business, Ericsson today announced that it would be making staff reductions in Sweden.

There will be staff reductions, streamlined processes, and a reduction in consultants as part of Ericsson’s global cost-cutting initiative, which is a part of its overall strategy to reduce costs, “while maintaining investments that are critical to Ericsson’s technology leadership.”.

As a result of negotiations initiated with unions, the company said it was looking at reducing the number of employees by approximately 1,200 in Sweden.

Approximately 14,000 people work across all areas of the business for Ericsson’s Swedish organization, according to the company.

Around 100,000 people work for Ericsson around the world.

In 2023, Ericsson has posted a sizeable loss as a result of write-downs and restructuring costs, and warned in January that they were expecting the market to continue to decline in the future.

It is estimated that Ericsson has incurred a loss of 26 billion kronor ($2.5 billion) for the past year after making a profit of 19 billion kronors in 2022.

The company, which is engaged in a fierce competition over 5G networks with Finland’s Nokia and China’s Huawei, also announced in February 2023 that it would go ahead with a cost-cutting program that would eliminate 8,500 jobs as part of that program.

In a statement last year, Nokia said it may reduce the number of employees by up to 14,000 by 2026. This would result in a reduction of 1.2 billion euros in costs.

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