Ericsson Layoff: Now the job of 8500 people will go to Ericsson, the company is planning to cut costs

Telecom equipment maker Ericsson is planning to lay off 8,500 employees globally in a bid to cut costs. This has been claimed in media reports. The company has announced plans to cut around 1,400 jobs in Sweden.

With the layoff announcement, Ericsson joins the ranks of companies such as Google, Meta and Microsoft to announce thousands of job cuts due to adverse economic conditions.

The reduction in workforce will be managed differently in different countries, Ericsson CEO Borje Ekholm wrote in a memo to employees. Reduction in workforce has already been reported in many countries.

Ericsson employs more than 105,000 people worldwide. The company hasn’t announced which areas will see the most layoffs. However, analysts had earlier predicted that North America would be the most affected by the layoffs and growing markets like India would be least affected.

In December the Swedish telecoms giant said it would cut costs by 9 billion kronor ($880 million) through the end of 2023 as demand slows in some markets, including North America.

According to media reports, Ekholm said in the memo, “To remain competitive, we have an obligation to reduce these costs. Right now our biggest enemy may be complacency.”

Carl Melander, Ericsson’s chief financial officer, told the media in the past that the cost-cutting would involve reducing the number of consultants, real estate and staff.

Let us tell you that last month Google announced the layoff of 12,000 people. While Microsoft had said that it would also reduce its workforce by 10,000.