Swedish telecommunications equipment manufacturer Ericsson announced on Monday March 25 the loss of 1,200 jobs in Sweden, or 8.6% of its workforce in the country, due to a
“difficult”
mobile network market .
Ericsson
“expects [...] a further contraction in volumes, with customers remaining cautious
,” the group said in a press release.
These job cuts
“are part of global initiatives aimed at improving its cost position
,” he continues, citing a reduction in the use of consultants.
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The Swedish giant, which is one of the three main mobile network providers in the world with the Chinese groups Huawei and the Finnish Nokia, employs around 14,000 people in Sweden, out of a total of nearly 100,000 employees worldwide.
Equipment manufacturers are suffering from a sharp slowdown in investments by telecom operators in North America and slowing growth in 5G deployment in India.
Ericsson suffered a heavy net loss of 26.1 billion Swedish crowns (2.3 billion euros) last year due to the depreciation in its accounts of the American Vonage and restructuring charges.
Its turnover fell by 3%, to 263 billion crowns (23 billion euros).
The Swedish group had already announced 8,500 job cuts in February 2023 in the face of a sluggish market.
Its competitor Nokia announced in October that it would cut up to 14,000 jobs out of 86,000 employees.