NEW DELHI: Sweden-based telecom equipment maker Ericsson is going to lay off 8,500 employees globally as part of its plan to cut costs. According to the reports, chief executive Borje Ekholm wrote in the memo that the way headcount reductions will be managed will differ depending on local country practice.
“The way headcount reductions will be managed will differ depending on local country practice. Our aim is to manage the process in every country with fairness, respect, professionalism and in line with local labour legislation.
Any impact to employees will be first communicated to them,” said Ericsson India in a statement. While technology companies such as Microsoft, Meta and Google parent Alphabet have laid off thousands of employees citing economic conditions, Ericsson’s move would be the largest layoff to hit the telecoms industry.
Ericsson is a 5G vendor to India’s top two telecom operators Reliance Jio and Bharti Airtel. Jio gave it a contract to roll out 5G Standalone (SA) in the country. Ericsson employs more than 105,000 worldwide. The company announced it would cut about 1,400 jobs in Sweden on Monday.
As per the reports, in December Ericsson said it would cut costs by 9 billion crowns ($880 million) by the end of 2023 as demand slows in some markets, including North America. “It is our obligation to take this cost out to remain competitive,” Ekholm said in the memo.