Swedish communications equipment giant Ericsson, which will have 105,000 employees worldwide in 2022, has announced that it will cut 8,500 jobs worldwide, while the group faces financial difficulties.
The company published disappointing annual results for the same year, due to the slowdown in operators’ spending on 5G networks, while the global economy is witnessing contraction and inflation. The group recorded a decline in its net profits in 2022 by 39 percent, to reach 6.2 billion crowns (about 561 million euros).
The company stated that the largest number of jobs will be eliminated in the first half of the year 2023, provided that jobs will also be abolished during the year 2024.
In the context, “Ericsson” spokeswoman Jenny Hedelin told “Agence France Presse” that “we see that it is possible to simplify structural costs and increase efficiency in the company,” stressing that “unfortunately, the workforce must be taken into account, and we believe that 8,500 jobs will be affected.”