Heaptalk, Jakarta — Ericsson announced the reduction of its 1,200 employees in Sweden following the weakening demand (03/25). This measure is part of the global initiatives to improve the cost position while maintaining investments critical to the company.
The company expects the initiatives to increase operational efficiency to extend during 2024. Previously, Ericsson forecasted that the mobile networks would face a tough market this year with further volume contraction as customers remain cautious.
In Sweden, Ericsson employs 13,977 staff while globally it includes 99,952 workers spread across Southeast Asia, Oceania, India, Northeast Asia, North America, Europe, Latin America, the Middle East, and Africa.
Besides reducing staff, the cost-saving initiatives include other measures, such as reduction of consultants, streamlining of processes, and reduced facilities. All of these efforts aim to keep the company implementing its strategy to achieve higher growth and reach the long-term margin targets through leadership in mobile networks and a focused expansion into the enterprise.
Founded in 1876, Ericsson has been a key player in the evolution of mobile networks, including 5G. Ericsson provides connectivity services for communications service providers and enterprises with a portfolio spanning networks, cloud software and services, enterprise wireless solutions, global communications platforms, as well as technologies and new businesses.
The company assists customers go digital, increase efficiency, and explore new revenue streams. Several mobile operators are working with Ericsson to develop 5G network, including AT&T, China Mobile, Deutsche Telekom, Korea Telecom, Turkcell, TeliaSonera, Verizon, Vodafone, and Telkomsel.
