Swedish telecommunications equipment manufacturer Telefonaktiebolaget LM Ericsson ADR Eric will lay off 8,500 employees worldwide as part of cost-cutting measures.
According to Reuters, the job cuts are projected to affect North America, which will hit the telecommunications industry the hardest.
Last week, the company announced that it would also cut about 1,400 jobs in Sweden.
According to the company’s website, it has approximately 105,529 staff worldwide and employs approximately 11,994 people in North America.
“How the cuts are managed will depend on local practices,” Reuters quoted the chief executive as saying. Borje Ekholm said in a note.
“Several countries have already reported job cuts this week,” he said.
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In December 2022, the company announced it would cut costs by $880 million by the end of 2023 due to slowing demand in some markets.
“It is our duty to reduce this cost in order to remain competitive,” Ekholm said in a note. “Our greatest enemy right now may be complacency.”
According to Reuters, Ericsson’s chief financial officer Karl Melander Cost reductions include cutting consultants, real estate and headcount, it said.
The company said it expects to see cost savings in the second quarter of this year.
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