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Ericsson to cut 1,400 jobs in Sweden
Global Banking & Finance Review®
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STOCKHOLM (Reuters) -Telecoms gear maker Ericsson plans to cut about 1,400 jobs in Sweden as part of a broader plan to reduce costs globally, it said on Monday.
STOCKHOLM (Reuters) -Telecoms gear maker Ericsson plans to cut about 1,400 jobs in Sweden as part of a broader plan to reduce costs globally, it said on Monday.
The company had earlier announced plans to cut costs by 9 billion crowns ($880 million) by the end of 2023 as demand slows in some markets, including North America.
Further job cuts, numbering several thousands in other countries, are likely to be announced in the coming days, said two sources close to the matter.
Ericsson last made deep cuts in 2017 when it laid off thousands of employees and focused on research to pull the company out of losses.
The company was negotiating with its employee union in Sweden for months on how to handle cost cuts.
Agreement has now been reached with Swedish unions on how to manage headcount reductions, a spokesperson said, adding that the company intends to make the cuts through a voluntary programme.
(Reporting by Supantha MukherjeeEditing by David Goodman)
Cost reduction refers to the process of decreasing expenses to improve profitability. Companies often implement strategies to lower operational costs while maintaining quality and efficiency.
Job cuts involve reducing the number of employees in a company, often due to financial constraints or restructuring. This can impact workforce morale and company culture.
A voluntary program allows employees to choose to leave their jobs, often with incentives such as severance pay. This approach can help companies manage layoffs more amicably.
A telecommunications company provides services related to communication over distances, including phone, internet, and data services. These companies play a crucial role in connecting people and businesses.
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