Ericsson will finally lay off 8,500 employees worldwide

ericsson it has not taken long to announce layoffs globally after confirming early last week 1,400 layoffs in Sweden alone. The company already warned then that it was a first wave of cost reduction, and that it would announce more in the near future. Well, it is already confirmed that will do without 8,500 of its workerswhich currently number 105,000, worldwide.

According to Reuters, the layoffs are part of a cost reduction plan, with which they expect to be able to cut expenses by 880 million dollars before the end of 2023. The company’s management has announced the measure to employees through a statement, in which they point out that the way in which the dismissals will be carried out will vary depending on the labor practices and laws of each country.

In said statement they have not indicated which country will be the most affected by the cuts, although several analysts suggest that the North American region could be the most affected by the layoffs, while emerging markets, such as India, would be the ones that would suffer the least. effects of layoffs.

According to him Ericsson CFO Carl Mellander, cost reduction, in addition to layoffs, will include a reduction in the number of external consultants the company works with. It will also bring with it an office closure, although the points at which this measure will be taken are unknown.

The company has placed most of the blame for the downsizing on decrease and slowdown in demand in various markets. Many companies significantly increased their inventories during the pandemic, which means that they now have a lot of equipment, and have slowed down their orders until they reduce it. Due to this brake on orders, according to Ekholm, they have the obligation to take this measure to remain competitive, and he has pointed out complacency as Ericsson’s main enemy today.

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