Ericsson Announces Major Workforce Reduction in Sweden
Swedish telecommunications giant Ericsson has proposed cutting approximately 1,600 jobs in its home country. The company made this announcement as part of broader global initiatives designed to enhance its cost position. Ericsson emphasized that these measures will help maintain crucial investments in technology leadership.
Strategic Cost-Cutting Measures
The Stockholm-based company confirmed it has submitted formal notice to the Swedish Public Employment Service. Ericsson has also begun negotiations with relevant Swedish trade unions regarding the proposed staff reductions. These actions form part of the company's strategy to deliver programmable networks and ensure competitive positioning.
In an official release, Ericsson stated: "The proposed staff reduction is part of global initiatives to improve cost position while maintaining investments critical to Ericsson's technology leadership." The company aims to build high-performing networks that enable differentiated services and new monetization opportunities.
Ongoing Operational Efficiency Efforts
Ericsson noted that additional operational efficiency initiatives will continue across the entire group. However, the company clarified that these future measures will not be announced separately. The current job cuts represent a significant step in Ericsson's ongoing restructuring efforts.
The telecommunications equipment market has experienced sluggish growth in recent years. Ericsson has faced particular challenges with weak customer demand, as expected spending by phone carriers on 5G technology has fallen short of projections.
Three Years of Workforce Reductions
This latest announcement continues a pattern of job cuts that Ericsson has implemented over the past three years. The company has been steadily reducing its workforce to remain profitable amid slower 5G spending and various market pressures including US tariffs.
In 2023, Ericsson announced a global plan to eliminate 8,500 positions, representing approximately 8% of its total workforce. Since that announcement, the company has continued reducing staff in various locations worldwide, including significant cuts in Spain and Canada last year.
Ericsson provides mobile communication and connectivity solutions for service providers and enterprises globally. The company has operated for 150 years and claims its networks connect billions of people daily. Despite its long history and market position, Ericsson continues to adapt to challenging market conditions through strategic workforce adjustments.
