Swedish telecommunications equipment giant Ericsson announced on Friday that it will cut 8,500 jobs worldwide as part of a cost-cutting plan, as the group faces financial difficulties. The group, which employed 105,000 people worldwide in 2022, had posted disappointing annual results for 2022, due to slowing spending on 5G by operators, against the backdrop of a slowing global economy and of inflation.
First semester 2023
According to Ericsson, most of the job cuts will be implemented in the first half of 2023, with the remaining cuts planned for 2024. “We see potential to simplify and become more efficient at the company, particularly in terms of structural costs.” . Ericsson spokeswoman Jenny Hedelin told AFP. “Unfortunately, the workforce will also have to be taken into account, we believe that a total of 8,500 positions will be affected,” she explained.
These cancellations occur after the announcement at the end of 2022 of a savings plan of 820 million euros. In 2022, the group had registered a 39% drop in its net profit, to 6,200 million crowns (around 561 million euros).
Source: BFM TV
