Ericsson to lay off 1,400 employees in Sweden
Technology
Nine billion crowns expense reduction due to slowdown in demand in several countries
STOCKHOLM (Reuters) - As part of a larger strategy to slash costs internationally telecom equipment manufacturer Ericsson announced on Monday that it would be eliminating roughly 1,400 positions in Sweden.
A reduction in expenses of 9 billion crowns ($880 million) by the end of 2023 had been previously stated by the corporation due to a slowdown in demand in several countries particularly North America.
There will undoubtedly be announcements of thousands more job losses in other nations in the upcoming days, according to two persons familiar with the situation. The last time Ericsson made significant layoffs was in 2017 when it let go of thousands of workers and concentrated on research to turn the firm around.
Months of negotiations on how to manage cost reduction took place between the corporation and the Swedish labor organisation. The business aims to implement the staff reductions through a voluntary program, the spokeswoman said, adding that agreement has now been reached with Swedish unions on how to handle them.
