Ericsson said there will be a headcount reduction of approximately 1,200 in Sweden. The telecom equipment maker has initiated negotiations with the unions.

According to annual report of Ericsson, the company has already reduced its workforce in Sweden to 13,977 employees in 2023 from 14,481 in 2022. The total number of employees at Ericsson has reached 99,952 in 2023 as compared with 105,529 in 2022. Ericsson has hired 7,785 employees in 2023 against 17,235 in 2022.

Ericsson earlier said it expects a challenging mobile networks market in 2024 as telecom operators remain cautious about Capex.

Ericsson said this measure is part of the global initiatives to improve the cost position, including headcount reductions, while maintaining investments critical to Ericsson’s technology leadership. Initiatives to increase operational efficiency will continue during 2024 but will not be announced separately.

Ericsson’s cost saving initiatives cover areas such as reduction of consultants, streamlining of processes, and reduced facilities.

Ericsson is in the process of executing on its strategy to achieve a higher growth and to reach the long-term margin targets, through leadership in mobile networks and a focused expansion into enterprise.

Baburajan Kizhakedath