Ericsson plans to lay off 8,500 staff worldwide to reduce expenses

Swedish 5G networks maker Ericsson plans to lay off 8,500 staff worldwide to reduce expenses.

The bulk of the cuts will take place during the first half of the year, but some will only take place in 2024, the company said in an email. The cuts are the equivalent of 8 per cent of its workforce and part of a plan laid out to cut $865 million in costs by the end of 2023 as demand slows in some markets, including North America.

“We see a potential to simplify and become more efficient throughout the company, especially when it comes to structural costs,” Ericsson said on Friday.

Ericsson’s move would be the largest layoff to hit the telecoms industry.