Ericsson
ERIC -1.88%
AB plans to lay off 8,500 employees worldwide, or about 8% of its workforce, the Swedish company said Friday, while it cuts costs as orders for its 5G gear have slowed in the U.S. and other markets.
The Stockholm-based company, which sells telecommunications equipment, said layoffs would happen this year and next year. The announcement came days after the company said it planned to cut around 1,400 jobs in Sweden.
“Our aim is to manage the process in every country with fairness, respect, professionalism and in line with local labour legislation,” Ericsson said.
Ericsson had said late last year that it planned to reduce costs by $861 million through the end of 2023 by using fewer consultants, closing facilities and streamlining processes. The company has invested in next-generation 5G wireless technology but its chief executive,
Börje Ekholm,
said last month that the 5G rollout had been slower than expected.
Tech companies and other industries have been laying off employees and trimming costs. Large organizations including Google parent
Alphabet Inc.
and Amazon.com Inc. have announced thousands of layoffs as growth has slowed or demand has weakened for their products.
Jenny Hedelin,
an Ericsson spokeswoman, said a variety of positions would be cut but didn’t specify which ones.
Ericsson said last month that North American telecom operators have held off on ordering new 5G gear because of economic uncertainty.
Cellular operators in the U.S., China, the Middle East and elsewhere have installed 5G networks, sometimes using Ericsson’s equipment, to offer customers faster wireless speeds. Still, some early adopters of 5G wireless networks have said they haven’t noticed that the networks are faster.
Write to Alyssa Lukpat at alyssa.lukpat@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Ericsson
ERIC -1.88%
AB plans to lay off 8,500 employees worldwide, or about 8% of its workforce, the Swedish company said Friday, while it cuts costs as orders for its 5G gear have slowed in the U.S. and other markets.
The Stockholm-based company, which sells telecommunications equipment, said layoffs would happen this year and next year. The announcement came days after the company said it planned to cut around 1,400 jobs in Sweden.
“Our aim is to manage the process in every country with fairness, respect, professionalism and in line with local labour legislation,” Ericsson said.
Ericsson had said late last year that it planned to reduce costs by $861 million through the end of 2023 by using fewer consultants, closing facilities and streamlining processes. The company has invested in next-generation 5G wireless technology but its chief executive,
Börje Ekholm,
said last month that the 5G rollout had been slower than expected.
Tech companies and other industries have been laying off employees and trimming costs. Large organizations including Google parent
Alphabet Inc.
and Amazon.com Inc. have announced thousands of layoffs as growth has slowed or demand has weakened for their products.
Jenny Hedelin,
an Ericsson spokeswoman, said a variety of positions would be cut but didn’t specify which ones.
Ericsson said last month that North American telecom operators have held off on ordering new 5G gear because of economic uncertainty.
Cellular operators in the U.S., China, the Middle East and elsewhere have installed 5G networks, sometimes using Ericsson’s equipment, to offer customers faster wireless speeds. Still, some early adopters of 5G wireless networks have said they haven’t noticed that the networks are faster.
Write to Alyssa Lukpat at alyssa.lukpat@wsj.com
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8