Ericsson Announces Job Cuts in Sweden

Ericsson expects a challenging mobile networks market in 2024, with further volume contraction as customers remain cautious. In line with managing lower volumes, the company announced staff reductions in Sweden.

This measure is part of the global initiatives to improve the cost position, including headcount reductions, while maintaining investments. The company added that initiatives to increase operational efficiency will continue during 2024 but will not be announced separately.

In addition to the headcount reduction, the cost-saving initiatives cover various areas such as reduction of consultants, streamlining of processes, and reduced facilities, while Ericsson keeps executing its strategy to achieve a higher growth trajectory and to reach the long-term margin targets, through leadership in mobile networks and a focused expansion into enterprise. As part of these ongoing global initiatives, the company announced a headcount reduction of approximately 1,200 in Sweden. Before the official announcement, Ericsson initiated negotiations with the unions.

In recent months, company executives have regularly bemoaned the state of the RAN market with CEO Borje Ekholm in January forecasting there would be further market decline outside of China during 2024. According to the 2023 annual report, Ericsson decreased its global headcount by over 5,500 to 99,952, with the decrease largely attributed to cost reduction activities.