Ericsson to put off 8,500 staff as a part of cost-cutting plan

Swedish telecom firm Ericsson will lay off 8,500 staff as a part of its cost-cutting measures, the corporate confirmed to CNBC on Friday.

Reuters earlier reported on the layoffs, which is able to impression roughly 8% of its staff of 105,529 worldwide. The corporate employs about 11,994 folks in North America, according to its website.

An Ericsson spokesperson mentioned the cuts had been a part of an “acceleration of structural price reductions efforts” as introduced throughout the firm’s Capital Markets Day on Dec.15. The spokesperson mentioned many of the layoffs would take impact within the first half of 2023, however may additionally lengthen into 2024.

“The best way headcount reductions can be managed will differ relying on native nation follow,” the spokesperson mentioned in a press release. “Our purpose is to handle the method in each nation with equity, respect, professionalism and in step with native labour laws. Any impression to staff can be first communicated to them.”

The corporate is in search of price reductions at a run-rate of 9 billion Swedish Kronor, or about $860 million, by the top of 2023. Ericsson mentioned it expects to begin seeing the impact of its price financial savings within the second quarter of this 12 months.

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