ericsson has not taken long to announce layoffs internationally after confirming early last week 1,400 layoffs in Sweden. The company already announced then that it would announce more in the near future. Well, it has already confirmed that it will no longer employ 8,500 of its employees, who currently number ten5,000 in the world.
According to Reuters, the layoffs are part of a cost reduction strategy, which they intend to accomplish by the end of 2023 by reducing expenses by 880 million dollars. The company's management has issued a statement saying that the manner in which the dismissals will be performed will depend on local labor laws and labor regulations.
Although many experts believe that the North American region might be the most affected by the layoffs, while developing economies, such as India, would suffer the most from the laidoffs.
Ericsson CEO Carl Mellander believes a cost reduction, along with layoffs, will increase the number of external consultants the business works with. It will also bring with it a closure of the offices, although the dates at which this action will be taken are unknown.
The majority of Ericsson's losses have been attributed to a drop and slowdown in demand in various markets. Many businesses significantly increased their inventories during the epidemic, which means that they now have a lot of equipment, and have slowed down their orders until they reduce it. According to Ekholm, they have the obligation to take this step in order to remain competitive.
