The news of layoffs has been causing worry among people thinking if they will be the next. One such BNN news story that has received attention is the telecom giant Ericsson, which will soon cut 8,500 jobs globally to cut costs. Ericsson is one of the players in 5G mobile networking and announced to drive a cut of $859 million by the year’s end. There are a few other measures that would necessitate addressing the headcount.
A shocking detail from Ericsson spokesperson
An Ericsson (ERIC) spokesperson recently shared with the media that at least 8,500 positions will be affected, and the layoffs will occur in the first half of the same year. The company shall manage the headcount fall that may differ as per local country practice.
Ericsson announced on Monday that they may cut at least 1500 jobs in Sweden, though this figure is only a portion of the total of 8,500. Even if Ericsson has earned its reputation as the top manufacturer of telecommunications equipment, it is all set to cut down at least 8,500 workers globally as a cost-cutting step. The business has declared its plan to significantly reduce its Swedish employee force. There is no doubt that major technology companies, such as Ericsson, have taken a significant hit, particularly during the post-pandemic hiring spree.
It has even been reported that many media companies are laying off employees as a result of the decline in online advertising. The layoffs will differ as per local country practice, and in many countries, the reduction in the headcount has already been informed to the concerned individuals this week.
This development has come up after a month when the company reported that their earnings were way too low compared to the expected core earnings for the fourth month. 5G equipment sales have also slowed globally, even in high-margin markets like the United States.
Various telecom major companies are focusing on lowering prices by $880 million by the end of the year, despite a global lull in telecom equipment demand.
Ericsson has clearly stated its intention to slash its value and make the layoffs the primary measures for the company’s survival. The Chief Financial Officer, Carl Mellander, shared with the news agency that the company will come up with more cost-cutting measures like reducing real estate, consultants, and employee headcount.
The number of layoffs will vary depending on the location. Some will begin immediately, while others will be completed as needed, taking into account the labor laws of various countries.
The company further stated the BNN News that there will be a fall in margin within the networking sector, which will go on for the first six months of this year. However, they even predict that the impact of the cost-saving initiative will be apparent by the second quarter’s end.