LONDON: Swedish telecom gear-maker Ericsson is laying off about 8% of its workforce, nearly 8,500 employees, to cut costs in the ongoing global macroeconomic conditions, a report said Friday.
The company said in an internal memo distributed to staff members that employees in several regions have been informed of the workforce decrease. a company spokesperson said as follows: "We see a chance to simplify and become more effective throughout the organisation, especially when it comes to structural costs. We will handle the personnel reduction with the utmost care and professionalism because it is never simple. The appropriate staff is always informed of further information first"
"The cost savings come from various areas, including fewer consultants, streamlined processes, fewer facilities, etc. It will also include head-count reduction, as previously revealed "Ericsson said.
Following negotiations with unions, the telecom networking giant previously let rid of at least 1,400 employees, or 10% of its Swedish workforce. After concluding negotiations with employee unions, the firm stated in a statement earlier this week that it intended to carry out the job cut procedure through a voluntary approach, according to Barron's. The company, which has its headquarters in Stockholm, said in December of last year that it hoped to reduce costs by $880 million by the end of 2023.
Last month, Ericsson missed expectations for its fourth-quarter earnings. The company joins a growing list of tech companies that have recently let go of thousands of workers. It has issued a warning about declining consumer spending in the US and other developed nations.
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