Ericsson Prepared To Slash 8.5K Jobs Globally, North America To Take Maximum Hit

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  • Telecom equipment maker Ericsson ERIC proposed to fire 8,500 employees globally to cut costs.
  • "The way headcount reductions will be managed will differ depending on local country practice," Reuters reports citing CEO Borje Ekholm's internal memo.
  • On Monday, Ericsson shared plans to cut about 1,400 jobs in Sweden.
  • Also Read: Ericsson's Q4 Profit Takes Hit Due To Cloud Strategy Adjustments; Goes Cautious On Q1 Amid Macro Headwinds
  • The analysts expected North America to be the most affected and growing market, like India the least.
  • In December, Ericsson shared plans to cut costs by 9 billion crowns ($880 million) by 2023 as demand slowed in some markets, including North America.
  • Ericsson CFO Carl Mellander had told Reuters that cost cuts would involve reducing consultants, real estate, and employee headcount.
  • Technology companies, including Microsoft Corp MSFTMeta Platforms Inc META, and Alphabet Inc GOOG GOOGL, laid off thousands of employees citing economic conditions.
  • Many telecom companies had beefed up their inventories during the height of the pandemic, which led to slowing orders for telecom equipment makers.
  • Price Action: ERIC shares traded lower by 1.07% at $5.53 premarket on the last check Thursday.
Posted In: NewsTechMediaBriefs
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