Ericsson Sees Slowdown In 5G Orders, Slashes 1.4K Jobs - Telefonaktiebolaget L M (NASDAQ:ERIC)

Ericsson ERIC eyed downsizing by 1,400 jobs in Sweden as it battled softness in demand for its 5G gear in markets like the U.S.
The downsizing reflected its plans to reduce costs by 9 billion Swedish kronor (equivalent to $861 million) by the end of 2023 through streamlining processes, closing facilities, and using fewer consultants, the Wall Street Journal reports.
Ericsson completed negotiations with Swedish labor unions and plans to make job cuts through a voluntary program.
Managers will share how each unit is affected by their employees shortly.
In January, Ericsson reported lower-than-expected quarterly profit and warned against an uncertain start to the new year as telecom operators in markets like the U.S. became cautious about placing new orders for 5G gear amid economic uncertainty.
Ericsson said that the trend hurt its critical networks unit in the fourth quarter of 2022 and expects it to continue during the first half of this year. It said operators in North America had reduced capital expenditure and will likely continue to sweat assets in response to macroeconomic headwinds.
The macro uncertainties took a toll on companies, including the Big Techs, with Amazon.Com Inc AMZN downsizing by 18,000 jobs.
Price Action: ERIC shares traded lower by 0.17% at $5.75 premarket on the last check Tuesday.