Telecom equipment maker Ericsson will lay off 8,500 employees globally, reported news agency Reuters who have seen a memo sent to the company’s employees.
Telecom equipment maker Ericsson will lay off 8,500 employees globally, reported news agency Reuters who have seen a memo sent to the company’s employees.
The layoffs are part of Ericsson’s plan to cut off costs, in what counts as the largest layoff to hit the telecoms industry.
“The way headcount reductions will be managed will differ depending on local country practice,” Chief Executive Borje Ekholm wrote in the memo.
“In several countries the headcount reductions have already been communicated this week,” he said.
“It is our obligation to take this cost out to remain competitive,” Ekholm said in the memo. “Our biggest enemy right now may be complacency.”
“Ericsson Chief Financial Officer Carl Mellander had earlier told Reuters that cost cuts would involve reducing consultants, real estate and employee headcount,” said the agency.
Ericsson employs more than 105,000 worldwide. Last December, the company said it would cut costs by 9 billion crowns ($880 million) by the end of 2023.