Swedish telecom large Ericsson stated on Monday it could lay off about 1,200 workers in Sweden as part of price cuts introduced earlier this 12 months, citing a “challenging” cellular networks market and decrease volumes in 2024.
After just a few years of excessive demand for 5G tools, shopping for by telecom suppliers has slowed, prompting companies similar to Ericsson and Nokia to put off hundreds of workers to avoid wasting prices.
“As previously stated, Ericsson expects a challenging mobile networks market in 2024, with further volume contraction as customers remain cautious,” the corporate stated in an announcement.
“In line with managing lower volumes, Ericsson today announces proposed staff reductions in Sweden,” it stated.
Ericsson will proceed its initiatives to extend operational effectivity throughout 2024, however won’t make any separate statements on these, it added.
The firm stated the measure was a part of world initiatives to scale back prices, together with employees reductions, streamlining processes and lowering consultants, “while maintaining investments critical to Ericsson’s technology leadership.”
It stated it had initiated negotiations with unions for a “headcount reduction of approximately 1,200 in Sweden.”
According to Ericsson, the corporate’s Swedish group employs round 14,000 individuals throughout all business areas.
Globally, Ericsson has round 100,000 employees.
Ericsson stated it was 26.1 billion kronor ($2.5 billion) within the crimson final 12 months after making a 19-billion-kronor revenue in 2022.
The firm, which is in fierce competitors over 5G networks with Finland’s Nokia and Chinese high-tech agency Huawei, in February 2023 additionally launched a cost-cutting program that included eliminating 8,500 jobs.
Nokia stated final 12 months it may lower its workforce by as much as 14,000 individuals, lowering prices by as much as 1.2 billion euros by 2026.
Ericsson had informed Reuters in January it may have a look at additional price cuts this 12 months together with layoffs however with out giving a selected quantity.
Source: www.dailysabah.com