Ericsson to slash 8,500 jobs

Days before the wireless industry’s biggest trade show in Barcelona – where Ericsson will have a vast presence – the company revealed plans to cut 8,500 jobs over the next couple years.

Most of the cuts will be during the second half of 2023, but they will also run into 2024.

Ericsson said it’s handling the layoffs differently depending on local country practices.

“Our aim is to manage the process in every country with fairness, respect, professionalism” and in line with local labor legislation, the company said in a statement provided to Fierce. “Any impact to employees will be first communicated to them.”

Reuters reported last week that Ericsson planned to cut about 1,400 jobs in Sweden as part of a broader plan to cut costs globally and that several  thousand job cuts in other countries were likely to be announced. That happened on Friday.

The cuts are part of Ericsson’s $857 million cost savings activities. Citing the inflationary environment, the company announced previously and during its Capital Markets Day in December that it was accelerating cost reductions across the whole company.

Slower-than-expected 5G rollout

During the company’s earnings call last month, Ericsson CEO Börje Ekholm said that during the fourth quarter, they saw some operators slowing the pace on network investments, “and that includes front-runner customers in many markets.”

In North America, Ericsson saw a 7% decline year-over-year. “We have during the year seen accelerated capex investments, but we've also seen customers holding relatively large inventories,” he said.