Global networking and telco giant Ericsson is set to cut 1,400 jobs in its home country of Sweden as it encounters a number of issues.
The company said its move is partly caused by a reduction in demand for the company’s 5G networking gear in markets worldwide, including the US.
The telco company says it hopes to save 9 billion Swedish kronor by the end of this year, which equates to around $870 million, which is likely to require a multifaceted approach in terms of streamlining, reducing overheads like office spaces, and parting with some members of staff.
Ericsson job cuts
A company spokesperson said that the company has concluded negotiations with Swedish labor unions, and job cuts will be made through a voluntary program, which is in the process of rolling out to staff through managers in the coming days.
Redundancy packages have generally been offered across the industry, offering several weeks’ or months’ pay, extended health care, and other career transition aids. Ericsson didn’t immediately respond to TechRadar Pro’s request for information on this matter.
Sources familiar with the matter (via Reuters (opens in new tab)) said that announcements with regard to the layoffs’ effects in other countries are likely to be made in the coming days, though the effects are likely to be far-felt with the currently announced plans affecting an estimated 10% of the company’s Swedish workforce.
Ericsson is just the latest in an unfortunate trend that has seen huge tech corporations reduce their headcounts and take other cost-cutting measures.
A number of other big tech firms have announced cuts of between 5-10% in recent months, with some pushing the figure even higher, however despite the disappointing news that continues to unfold, some analysts have predicted that global IT spend could once again take an upward turn as soon as this year.
