Top telecom layoffs that made the news – ET Telecom

NEW DELHI: The telecom sector has seen many layoffs since the beginning of the year 2021. Whether the reason is Covid-19 or poor performance of the company, the sector continues to layoff employees in vast numbers.

The job cuts are a sign of the financial challenges being faced by the industry. The factors for slashing headcount differ from company to company, and range from right-sizing, cost-cutting to driving efficiencies through lean organisational structure.

Here are the top layoffs in the telecom sector which made the news in recent years:

Ericsson: The Swedish telecom gear maker announced plans of layoffs in year 2023. Total 8,500 employees would be laid off across the globe, reported news agency Reuters, making it the one of the largest layoff to hit the telecom industry.

“We see a potential to simplify and become more efficient throughout the company, especially when it comes to structural costs,” Jenny Hedelin, Ericsson spokesperson said, according to Bloomberg. The layoffs seem to be concentrated in its R&D and sales and marketing divisions.

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Vodafone: Vodafone announced its plan of slashing 11,000 jobs, or about 12% of its global workforce. The company said that the cuts are necessary to “simplify” its business and make it more competitive, reported the Financial Times.

The Financial Times also reported that Vodafone is considering selling its tower business, which could raise up to £5 billion. The sale would allow Vodafone to focus on its core mobile and fixed-line businesses.

Verizon: Verizon in May 2023 announced its plan to restructuring exercise that is likely to result in significant layoffs, US-based technology publication The Verge reported. Verizon took meeting with 6,000 employees and added that restriction measures could impact even more.

The company announced in January 2022 that it would be laying off 10,400 employees, or about 3% of its workforce. The layoffs were part of a broader restructuring effort at Verizon, which was looking to cut costs and streamline its operations.

AT&T: In 2022 AT&T laid off approximately 9,400 employees, a 3% reduction in the company’s workforce, according to US-based telecom publication, Light Reading. The layoffs were part of a broader restructuring effort at AT&T, which was facing increasing competition from rivals such as Verizon and T-Mobile.

In 2021 AT&T announced in February that it would be laying off 23,000 employees, or about 6% of its workforce. The layoffs at AT&T were met with a great deal of criticism, both from employees and from the public. Employees who were laid off were angry and frustrated, and many felt that they were being unfairly targeted.

BT: BT is planning to reduce its total workforce, including contractors, by up to 55,000 jobs, according to reports. The layoffs are part of the restructuring plan that BT announced on May 18. The company said that the layoffs are necessary to “simplify its business and make it competitive.”

According to Reuters, the layoffs are the latest in a series of challenged that BT has faced in recent year. The company has been struggling to compete with rivals such as Virgin Media and Sky. BT has also been hit by regulatory changes and decline of traditional landline services.

USCellular: Mobile network operator USCellular was reported to be laying off employees, in order to navigate a highly competitive environment and meet its long-term growth goal, according to Fierce Wireless.

The company did not disclose how many people were affected by the layoffs but said they spanned numerous areas of operation.

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