Ericsson, the Swedish telecom company, confirmed to news on Friday that it will lay off 8,500 workers as part of cost-cutting measures.
Reuters first reported on the layoffs, affecting roughly 8% of the company’s 105,529 employees worldwide. According to its website, the company employs approximately 11,994 people in North America.
Regarding to an Ericsson spokesperson, the cuts are part of the company’s “acceleration of structural cost reduction efforts,” announce on December 15 during the company’s Capital Markets Day.
According to the spokesperson, most of the layoffs will take effect in the first half of 2023, but they may extend into 2024.
“How headcount reductions will be manage will vary depending on local country practise,” a spokesperson said in a statement. “Our aim is to manage the process in every country with fairness, respect, also professionalism. Also in line with local labour legislation. Any impact on employees will be communicate to them first.”
By the end of 2023, the company hopes to reduce costs by 9 billion Swedish kronor, or approximately $860 million. Ericsson expects to see the benefits of its cost savings in the second quarter of this year.