[ad_1]
Ericsson is slated to be the latest entrant in the streak of layoffs, as the telecom gear maker is planning to cut around 1,400 jobs in Sweden and more in other countries. The company called the layoffs part of the broader plan to reduce costs globally.
Ericsson is slated to be the latest entrant in the streak of layoffs, as the telecom gear maker is planning to cut around 1,400 jobs in Sweden and more in other countries. The company called the layoffs part of the broader plan to reduce costs globally.
The people familiar with the announcement also claimed that in the coming days, several thousand job cuts can be announced in different countries. This magnitude of layoffs at Ericsson is coming after almost 6 years, as it was in 2017 when the company laid off thousands of employees and focused on research to pull the company back from losses.
The people familiar with the announcement also claimed that in the coming days, several thousand job cuts can be announced in different countries. This magnitude of layoffs at Ericsson is coming after almost 6 years, as it was in 2017 when the company laid off thousands of employees and focused on research to pull the company back from losses.
Subscribe to Continue Reading
Earlier, Ericsson announced that it plans to cut costs by around $880 million by the end of 2023, due to slow demand across the globe including North America.
The company is negotiating with the employees union in Sweden for months on how the costs cut be handled. The parties have also reportedly reached an agreement on reducing the headcount and the company is planning to make jobs cut through a voluntary program.
The decision comes a month after Ericsson reported lower-than-expected fourth-quarter core earnings. The shares of the telecom company hit fresh lows as the sale of 5G equipment slowed globally, especially in high-margin markets like the United States (US).
The company’s Chief Financial Officer Carl Mellander told news agency Reuters that the company is planning on cost-cutting measures which will include reducing consultants, real estate, and also employee headcount. “It’s different from geography to geography, some are starting now, and we’ll take it unit by unit, considering the labor laws of different countries,” Mellander said, referring to the cuts.
Ericsson expects a fall in the margin in the Networks business to persist through the first half of 2023, and the effect of cost-saving measures is expected to be visible by the second quarter.
With inputs from Reuters
[ad_2]
Source link