According to a document obtained by Reuters, telecom equipment company Ericsson (ERICb.ST) will lay off 8,500 staff worldwide to save expenses.
Ericsson’s layoff would be the telecoms industry’s greatest. Microsoft (MSFT.O), Meta (META.O), and Google (GOOGL.O) have cut off thousands of staff due to economic difficulties.
Chief Executive Borje Ekholm noted in the email that personnel reductions might vary by country.
“Many nations have disclosed headcount cutbacks this week,” he added.
The corporation, which employs more than 105,000 worldwide, announced 1,400 Swedish job cuts on Monday.
Analysts projected that North America would be most affected and developing markets like India the least. However, Ericsson did not reveal this.
As demand weakens in several countries, particularly North America, the business announced in December that it would slash expenses by 9 billion crowns ($880 million) by 2023.
“To remain competitive,” Ekholm said in the memo. “Complacency may be our greatest threat.”
Several telecom businesses increased their stocks during the epidemic, reducing communications equipment purchases.
Verizon (VZ.N), one of the major telecom corporations, aims to spend $18.25 billion to $19.25 billion on capital expenditures this year, down from $23 billion last year.
Carl Mellander, Ericsson’s CFO, told Reuters that consultants, real estate, and staff would be reduced.
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