Ericsson layoffs: Telecom equipment giant to cut 1,600 jobs in Sweden in push to cut costs
Layoff news: Ericsson said on Thursday it plans to lay off about 1,600 employees in Sweden as part of cost-cutting measures.
In the statement, it was stated that Ericsson submitted a notification to the Swedish Public Employment Agency and started negotiations with the relevant unions. “Approximately 1,600 positions in Sweden may be affected. The company has started negotiations with the relevant Swedish unions.”
“Initiatives to improve operational efficiency will continue across the group but will not be announced separately,” the company added.
Why is Ericsson cutting jobs?
The telecom equipment group said in a press release that the proposed job cuts were part of the company’s global initiatives to improve its “cost position”.
Ericsson said in its press release that it was proposing “staff reductions in Sweden as part of measures aimed at securing the company’s competitive position.”
Ericsson has recently been working to reduce costs and improve margins as the telecom equipment market continues to trend downward. The company has been struggling with weak demand for years as operator spending on 5G technology has failed to meet expectations.
The company stated that this move will also help sustain investments that are critical to Ericsson’s technology leadership. Additionally, the layoffs will result in “the implementation of a strategy to deliver high-performance, programmable networks that provide differentiated services and new monetization opportunities.”
Ericsson has steadily cut headcount over the past three years to maintain profitability as it grapples with slowing 5G spending and US tariffs.
The company announced a global plan to cut 8,500 jobs in 2023, equivalent to 8% of its workforce. Cuts have continued since then, and the company laid off hundreds of staff in Spain and Canada last year.
The company’s share price has fallen approximately 8.5% over the last 12 months.
Layoffs in 2026
This is the fourth major company to announce layoffs in January this year.
The job loss trend that companies are struggling with in 2025 continued in the new year.
Previously, BlackRock announced plans to cut hundreds of jobs this month after Meta announced it would lay off 10% of its workforce in its Digital Labs division.
according to Bloomberg Layoffs at Meta are expected to take place later this week, according to a person familiar with the development.
Banking giant Citigroup is also about to lay off nearly 1,000 employees this week as CEO Jane Fraser wants to control costs and increase returns at the company.
