NewsEricsson to cut 1,200 jobs in Sweden amid 5G sales slump
Ericsson to cut 1,200 jobs in Sweden amid 5G sales slump
3:02 PM EDT, March 26, 2024
The Swedish conglomerate, Ericsson, announced plans to lay off approximately 1,200 employees in Sweden as part of cost-cutting measures initiated at the start of 2024. This move comes in response to the declining sales of 5G networks in North America, signaling challenging times ahead for the company, which doesn’t rule out the possibility of further workforce reductions.
According to Reuters, Ericsson's decision to cut 1,200 jobs emerges from the board's strategy to mitigate the impacts of a weakening demand for 5G network infrastructure. This reduction accounts for 9% of the company’s workforce in Sweden, highlighting the significant scale of these cutbacks.
5G's anticipated success falls short
Ericsson shared in a statement that the company "expects a challenging mobile network market in 2024, due to a further decline in volume as customers exhibit caution." Furthermore, Reuters reports that Ericsson will pursue “initiatives aimed at increasing efficiency in 2024."
Analysts speaking to Reuters have suggested that further layoffs seem inevitable in the coming period, possibly extending into 2025. These predictions stem from ongoing difficulties within the mobile infrastructure market.
"Let’s be honest, 5G has not achieved the staggering success everyone hoped for," remarked analyst Paolo Pescatore from PP Foresight, capturing a sentiment that underscores the setbacks facing the industry.
