London-based telecoms company Ericsson (CNN) plans to cut 8,500 jobs worldwide to cut costs.
The company – one of the world’s largest providers of 5G mobile networks – has announced that it will reduce costs by 9 billion kroner ($859 million) by the end of this year.
Among other measures, the plan “will also result in a need to address headcount,” an Ericsson (ERIC) spokesman told CNN on Friday.
“We believe a total of 8,500 jobs will be affected,” the spokesman said, noting that the bulk of the layoffs would occur in the first half of this year. “The way the downsizing will be managed will depend on local country practice.”
On Monday, Ericsson said it would cut about 1,400 jobs in Sweden. Those cuts are part of the 8,500 total, the spokesman said on Friday.
Ericsson is the latest company to announce thousands of layoffs in recent weeks. Big Tech was hit particularly hard after going on a hiring tour during the pandemic. Media companies have also cut staff as online advertising plummeted.
Last month, Ericsson reported lower-than-expected fourth-quarter core earnings as sales of 5G devices slowed in markets like the United States, Portal reported.