It’s completed in a bid to render the corporate “extra environment friendly”.

Stockholm:

Telecom tools maker Ericsson stated Friday it might slash 8,500 jobs worldwide, a part of a cost-cutting programme as monetary headwinds push operators to rein in spending.

Ericsson, which had a complete of 105,000 workers on the finish of 2022, final month posted disappointing full-year 2022 earnings, as operators sluggish spending on rolling the newest 5G networks as a result of international financial slowdown and rising inflation.

The Swedish firm stated many of the layoffs can be carried out within the first half of 2023 and the remainder in 2024, because it accelerated its $860 million price saving plan introduced on the finish of 2022.

“We see potential to simplify and change into extra environment friendly throughout the corporate, particularly in structural prices. However we’re additionally engaged on our service supply, provide, actual property and IT,” spokeswoman Jenny Hedelin instructed AFP.

“It’s going to, nonetheless, sadly additionally lead to a necessity to handle headcount. We imagine a complete of 8,500 positions might be affected”, she stated.

Ericsson stated 1,400 of the job cuts have been in Sweden, which had already been introduced earlier this week.

For 2022, the group posted a 39 p.c drop in web revenue to six.2 billion kronor (1.7 billion euros, $1.8 billion).

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