Ericsson, the telecom gear maker, is now the latest addition to the list of companies engaged in mass layoffs. According to reports, Ericsson is cutting about 1,400 jobs in Sweden and may lay off more employees worldwide, in the coming months.
As per a Reuters report, Ericsson layoffs come as a part of a broader plan to reduce costs globally amid economic slowdown. It adds that Ericsson had earlier announced its plans to cut costs by 9 billion crowns by the end of 2023 as it witnessed slowing demand in some markets like in the North America.
However, Ericsson layoffs may not stop at Sweden. The report adds, citing sources, that the company may take another step towards trimming jobs. This means that in the coming days, more news of layoffs at Ericsson is expected, this time coming from different parts of the world.
Before this round of tech layoffs at Ericsson, the tech gear maker slashed hundreds of jobs in 2017 in order to stabilise the company’s losses and go back on the road of making profits.
“The company was negotiating with its employee union in Sweden for months on how to handle cost cuts…Agreement has now been reached with Swedish unions on how to manage headcount reductions,” Reuters quoted a company spokesperson as saying.
As far as the global outlook goes, experts believe that even 2023 is a rather grim year for many companies, especially those in the tech sector. The trend of mass layoffs is expected to continue at a time when an economic gloom sets in.
