Yahoo Finance Telecoms giant Ericsson to lay off 8,500 staff
Telecoms giant Ericsson is to lay off 8,500 staff in a bid to slash costs.
The Swedish maker of 5G networks notified staff of the measures in an internal company memo this week, according to reports by the Reuters news agency.
The move follows a plan set out by the company last year to reduce costs by over £700 million by the end of 2023. Ericsson said the majority of the cuts would take place in the first half of 2023, but more would follow in 2024.
CEO Borje Ekholm said in a statement: “We see a potential to simplify and become more efficient throughout the company, especially when it comes to structural costs.”
Ericsson has 105,500 staff worldwide, implying a cutback of around 8% of jobs.
The firm has around 1400 staff in the UK according to its most recent annual report filed with Companies House, meaning over 100 UK workers could lose their jobs of the 8% cut is implemented in Britain.
Ekholm said in the staff memo that “the way headcount reductions will be managed will differ depending on local country practice.”
Ericsson posted sales of £586 million in the UK in 2021, a 30% jump on the previous year, while pre-tax profits climbed 48% to £16 million. However, profitability for the group as a whole took a turn in 2022, falling 27% to £1.5 billion.
The firm is one of the biggest service providers to the UK’s 4G and 5G networks. Last year, Ericsson said it planned to invest tens of millions of pounds in the UK over the next 10 years by establishing a new research unit to focus on 6G connectivity.
