Ericsson, the telecom company, announced Friday that it plans to cut 8,500 jobs, or 8% of its global workforce, in order to cut costs, making it the latest tech company to announce mass layoffs.
The Swedish company, which makes equipment for 5G networks, said the layoffs would take place this year and next as part of a $857 million cost-cutting plan by the end of 2023.
Ericsson did not say which regions would be the most affected. The company employs over 105,000 people worldwide, including North America.
“How headcount reductions will be managed will vary depending on local country practise,” said an Ericsson spokesperson in an email. “Our goal is to manage the process in each country fairly, with respect, professionalism, and in accordance with local labour legislation.”
In 2023, there will be an increase in the number of tech layoffs.
Ericsson is one of many companies that have announced job cuts in recent months. Following pandemic hiring sprees, tech titans ranging from Amazon to Meta to Microsoft have cut thousands of jobs and cut costs.
The telecom company announced in December that it would seek to reduce costs by the end of 2023. It said on Friday that it expects to see the results of its cost-cutting efforts, including layoffs, in the second quarter.
“We are also working on our service delivery, supply, real estate, and information technology,” the spokesperson added. “We have already begun to implement and accelerate various initiatives to assist us in meeting this goal.”
