- Swedish telecom company Ericsson will lay off 8,500 employees as part of its cost-cutting measures, the company confirmed to CNBC on Friday.
- It will affect approximately 8% of Ericsson’s workforce of 105,529 worldwide.
- A spokesman said most of the layoffs will start in the first half of 2023, but could extend into 2024.
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Swedish telecom company Ericsson will lay off 8,500 employees as part of its cost-cutting measures, the company confirmed to CNBC on Friday.
Reuters previously reported on the layoffs, which will affect about 8% of its 105,529 workforce globally. The company employs approximately 11,994 people in North America, according to its website.
An Ericsson spokesperson said the cuts are part of an “acceleration of structural cost savings” announced at the company’s December 15 Capital Markets Day. The spokesman said most of the layoffs will start in the first half of 2023, but could extend into 2024.
“How staff reductions are managed will differ depending on local practices in the country,” the spokesperson said in a statement. “Our goal is to manage the process in each country with fairness, respect, professionalism and in accordance with local labor laws. Any impact on employees will be communicated to them first.”
The company is targeting cost savings at a run rate of SEK 9 billion, or approximately $860 million, by the end of 2023. Ericsson said it expects to see the effect of its cost savings in the second quarter of this year.
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