Ericsson joins tech companies in announcing layoffs of 1,400 workers in Sweden, 10% of its workforce

The Swedish telecommunications company Ericsson plans to cut about 1,400 jobs in Sweden, which represents 10% of the workforce. 14,500 workers. The decision, according to Reuters and the local agency of the Scandinavian country TT, is part of a worldwide cost-cutting plan.

The company announced its intention to reduce costs by approx 9,000 kroner ($880 million) until the end of this year 2023. Although he did not confirm this, Ericsson could extend the staff reduction measure to other delegations around the world. This is not the first time that the Swedish manufacturer has taken measures of this kind. In 2017, he already laid off more than 2,000 employees also pull the company out of losses.

The company has been negotiating with its employee union in Sweden for months on how to deal with the cost cuts, adding that it intends to launch a layoff program across volunteer program.

Ericsson withdraws some heavy exercises, which worsened after the war in Ukraine. The war forced it, like other multinationals, to leave the Russian market, with 400 people in the country losing their jobs. In parallel, it also sold its loss-making California-based IoT division, with the company saying at the time that the sale would reduce quarterly losses by 22 million euros.

Ericsson expected positive cash flow and operating profit equal to 5% of sales by 2022, after losing 2.358 million euros in 2001, the company’s first red numbers in more than 50 years. The organization has already been forced to cut its operations by a fifth, although analysts say this strategy has not been enough, as sales results continue to fall. Experts predict the need for sell specific business goalsas currency chips and production equipment and cables made of copper and optical fibersexcept for dismissal.