Telecom equipment maker Ericsson is planning to lay off at least 1,400 employees or 10 percent of its workforce in Sweden after negotiating with unions.
Ericsson had reported EBITA of SEK 29.1 billion in 2022 vs SEK 33.3 billion in 2021 with an EBITA margin of 10.7 percent vs 14.3 percent. EBITA was negatively impacted by previously announced charges of SEK -5.5 billion, partly compensated by increased IPR licensing revenues. Ericsson reported net income of SEK 19.1 billion in 2022 vs SEK 23 billion in 2021.
Ericsson said in a statement that the mobile network supplier aims to conduct the job cut process through a voluntary program after closing negotiations with employee unions.
“The cost savings cover various areas such as reduction of consultants, streamlining of processes, reduced facilities, etc. As previously announced, it will also include head-count reduction,” Ericsson said.
The reductions in Sweden are likely to be followed by several thousand more job cuts in other countries, Reuters news report said.
Ericsson employs 14,500 people in Sweden.
The Stockholm-headquartered company in December last year said it was aiming to slash costs by $880 million by the end of 2023.
Ericsson had warned of reduced spending from customers in the US and other developed markets.