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The cuts follow lay offs in other markets, including France, Canada, and Spain
This week, telecoms giant Ericsson has announced it is preparing to cut around 1,600 jobs in its home market of Sweden, citing the need to remain competitive.
The mobile network equipment maker currently employs around 14,500 people in the country, with the reduction therefore representing more than 10% of the companies domestic headcount.
“The proposed staff reduction is part of global initiatives to improve cost position while maintaining investments critical to Ericsson’s technology leadership and the execution of the strategy to deliver high-performing, programmable networks that enable differentiated services and new monetization opportunities,” said the company in a press release. “Initiatives to increase operational efficiency will continue across the Group but will not be announced separately.”
According to Ericsson, negotiations are underway with relevant Swedish trade unions.
Ericsson has been facing financial headwinds in recent years, primarily driven by strong international competition and underwhelming 5G demand. This, coupled with the disastrous acquisition of API specialist Vonage for $6.2 billion in 2022, saw the company initiate streamlining efforts in 2023, including cutting 8,500 jobs.
No additional cuts were announced until 2025, when Ericsson revealed a sting of layoffs in its overseas offices. In summer, Ericsson announced plans to cut around 300 jobs in Spain; in September, around 100 ‘technical jobs’ in Canada were on the chopping block; and in December, reports suggested the company also planned to lay off around 134 jobs in France.
Of course, Ericsson is not alone in facing these financial pressures – or to be responding with significant downsizing. The company’s Scandinavian rival Nokia is notably in the process of cutting 14,000 jobs by the end of 2026, in an effort to save around €1.2 billion, with around 700 jobs in France and Germany being the latest to be excised.
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