Ericsson to lay off 8,500 workers

STOCKHOLM - Swedish telecom equipment maker Ericsson will reportedly lay off 8,500 workers as part of its plan to cut costs, a spokesperson confirmed to German Press Agency (dpa).

The layoffs will affect roughly eight per cent of its staff of 105,529 worldwide.

Most of the layoffs would take effect in the first half of 2023 but could also extend into 2024.

"The way headcount reductions will be managed will differ depending on local country practice," the spokesperson said in a statement. "Our aim is to manage the process in every country with fairness, respect, professionalism and in line with local labour legislation. Any impact to employees will be first communicated to them.

According to reports, North America would likely be most affected by the layoffs and growing markets such as India the least.

The company is seeking cost reductions at a run-rate of nine billion Swedish kronor, or about US$860 million, by the end of 2023. Ericsson said it expects to start seeing the effect of its cost savings in the second quarter of this year. - BERNAMA