Ericsson to lay off 1,200 employees in Sweden
Economy

Ericsson to Cut 1,200 Jobs in Sweden Amidst Sluggish Demand for Mobile Network Services

Ericsson, a telecommunications equipment supplier headquartered in Sweden, has announced plans to cut approximately 8.6% of its workforce, or 1,200 jobs, in the country. This decision comes in response to challenging market forecasts for the mobile network sector in 2024, with customers expected to exercise caution and further reduce their demand for services.

With around 14,000 employees in Sweden and nearly 100,000 worldwide, Ericsson is one of the top three mobile network providers globally alongside Huawei and Nokia. The telecommunications industry has been impacted by decreased investment from North American telecom operators and slower growth in India’s 5G rollout.

Last year, Ericsson reported a significant net loss of 26.1 billion Swedish crowns (2.3 billion euros) due to write-downs related to the accounts of US company Vonage and restructuring charges. These challenges have prompted the company to take proactive measures to streamline operations and remain competitive in the evolving market.

As Ericsson adapts and innovates to align with industry trends and customer needs, it is essential for the company to focus on cost efficiency and strategic initiatives. By doing so, Ericsson aims to navigate the dynamic telecommunications landscape and position itself for long-term success.

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