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Ericsson to lay off 1,400 employees as 5G sales fall

Ericsson will lay off nearly 1,400 employees in Sweden as the company deals with slowing demand for its 5G gear in the US.

The reductions are part of a plan unveiled late last year by the company to slash costs by 9 billion Swedish kronor by the end of 2023.

The cuts will be made by streamlining operations, shutting facilities, and employing fewer consultants.

Read More: Ford to cut 1,300 UK jobs in European restructure

The telecommunications giant has been working with Swedish labor unions and now intends to make staff cuts through a voluntary program. 

A company spokeswoman said managers would address how each division is hit with their staff in the coming days.

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She declined to comment on the possibility of job cuts in other countries.

The cuts are the latest in a flurry of corporate layoffs so far this year, with a number of large corporations announcing plans to let go thousands of employees.

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Ericsson announced a lower-than-expected quarterly profit last month and warned of an uncertain beginning to the new year.

Due to economic concerns, telecom operators in markets like the United States are delaying new orders for 5G gear.

The firm said at the time that the trend started to hurt its key networks unit in the fourth quarter of 2022 and that it expects it to continue during the first half of this year. 

It said North American operators have slashed capital expenditure and were likely to sweat assets in response to macroeconomic challenges.

Source: The Wall Street Journal

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