As it accelerated its $860 million cost savings plan, which it announced at the end of 2022, the Swedish company said that the majority of the layoffs would take place in the first half of 2023 and the remaining in 2024.
Ericsson, a manufacturer of telecom equipment, announced on Friday that it would cut 8,500 jobs all over the world as part of a plan to cut costs as financial pressures force operators to cut back on spending.

As operators slow spending on rolling out the most recent 5G networks as a result of the global economic slowdown and rising inflation, Ericsson, which had a total of 105,000 employees at the end of 2022, posted disappointing full-year 2022 earnings last month.

As it accelerated its $860 million cost savings plan, which it announced at the end of 2022, the Swedish company said that the majority of the layoffs would take place in the first half of 2023 and the remaining in 2024.
“Especially with regard to structural costs, we see potential to simplify and become more efficient throughout the company. However, we are also working on our IT, supply, real estate, and service delivery, according to Jenny Hedelin, a spokesperson.

Unfortunately, it will also necessitate a headcount adjustment. She stated, “We estimate that 8,500 positions will be affected.”

According to Ericsson, 1,400 of the job cuts in Sweden had already been made public earlier this week.

The company’s net profit for 2022 decreased by 39% to 6.2 billion kronor, or 1.7 billion euros, or $1.8 billion.