Ericsson to lay off 1,400 employees at home to cut costs

STOCKHOLM: Telecom networking company Ericsson is planning to lay off at least 1,400 employees or 10 per cent of its workforce in Sweden after negotiating with unions.

The company said in a statement on Monday that the company intended to conduct the job cut process through a voluntary programme after closing negotiations with employee unions, reports Barron's.

"Reducing headcount is never easy, and we will manage this with the utmost respect and professionalism. Further details are always communicated to the relevant staff first," Ericsson said.

"The cost savings cover various areas such as reduction of consultants, streamlining of processes, reduced facilities, etc. As previously announced, it will also include head-count reduction," Ericsson added.

The reductions in Sweden are likely to be followed by several thousand more job cuts in other countries, according to Reuters, citing sources.

Ericsson employs 14,500 people in Sweden.

The Stockholm-headquartered company in December last year said it was aiming to slash costs by $880 million by the end of 2023.

Last month, Ericsson missed expectations for its fourth-quarter earnings.

The company joins a growing list of tech firms which have laid off thousands of employees in the recent months.

It had warned of reduced spending from customers in the US and other developed markets.