Ericsson to Cut 1200 Swedish Jobs

Global telecom giant Ericsson AB announced plans to reduce its Swedish workforce by 1,200 positions. This move underscores cost-cutting efforts prompted by declining network spending from mobile providers.

The company will also streamline operations by reducing facilities, cutting back on consultants, and optimising internal processes.  Negotiations with Swedish labor unions regarding these job cuts are underway.

Ericsson, alongside European rival Nokia Oyj, faces an industry-wide slowdown in spending by mobile service providers. In January, Ericsson cautioned that 2024 demand outside China would remain weak due to "unsustainably low" investment levels.

Carriers are voicing concerns about network expenditures and the challenging European market, which they believe negatively impacts returns. Additionally, the rise of "open radio access networks" will allow carriers to diversify vendors, intensifying competition.

These job cuts are the latest in a series of workforce reductions for Ericsson. Last year, the company announced plans to eliminate 8,500 positions worldwide. Nokia Oyj has also made significant cuts, reducing its workforce by up to 14,000 in October.