According to Reuters, telecom equipment maker Ericsson will lay off 8,500 workers globally as part of a cost-cutting strategy. The company has announced plans to lay off approximately 1,400 people in Sweden. Ericsson has now joined the ranks of tech behemoths such as Google, Meta, and Microsoft in announcing thousands of job cuts due to poor economic conditions.
Ericsson has not disclosed which geography would be most affected, but according to the report, analysts previously predicted that North America would be the most affected, with emerging markets such as India suffering the least.
As demand in some markets, including North America, slows, the Swedish telecom giant said in December that it would cut costs by 9 billion crowns ($880 million) by the end of 2023.
Carl Mellander, Ericsson’s Chief Financial Officer, previously told that cost cuts would include reducing consultants, real estate, and employee headcount.
Google announced 12,000 job cuts last month, while Microsoft announced 10,000 job cuts. In a letter to employees on January 20, Google CEO Sundar Pichai stated that the company had experienced periods of dramatic growth over the previous two years.
And it doesnt stop there, Microsoft CEO Satya Nadella announced that the tech giant will cut 10,000 jobs through the end of FY23 Q3. Customers increased their digital spending during the pandemic, according to Nadella, but they are now optimising their digital spending to do more with less.
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