Ericsson layoffs: Telecom equipment giant to cut 1,600 jobs in Sweden in push to cut costs
Layoff news: Ericsson said on Thursday that it plans to lay off around 1,600 employees in Sweden as part of its cost-cutting measures.
Ericsson has submitted a notice to the Swedish Public Employment Service and initiated negotiations with relevant trade unions, it said in the statement. “Approximately 1,600 positions could be impacted in Sweden. The Company has initiated negotiations with the relevant Swedish trade unions.”
“Initiatives to increase operational efficiency will continue across the group but will not be announced separately,” the company added.
Why is Ericsson slashing jobs?
In a press release, the telecom equipment group said that the proposed layoffs were part of the company’s global initiatives to improve “cost position.”
It proposed the “staff reductions in Sweden as part of measures aimed at ensuring the company’s competitive position,” Ericsson said in its press release.
Ericsson has been, in recent times, working to cut costs and improve margins as the telecom equipment market remains bearish. The company has struggled with weak demand for years now, as anticipated carrier spending on 5G technology has not met expectations.
The move will also help maintain investments critical to Ericsson’s technology leadership, the company said. Additionally, the layoffs will result in the “execution of the strategy to deliver high-performing, programmable networks that enable differentiated services and new monetisation opportunities.”
Ericsson has been steadily reducing headcount over the last three years to maintain profitability as it grappled with 5G spends slowdown and US tariffs.
In 2023, the company announced a global plan to cut 8,500 jobs, equivalent to 8% of its workforce. Cuts have continued since then, with the company axing hundreds of staff in Spain and Canada last year.
The company’s share price has fallen about 8.5% over the past 12 months.
Layoffs in 2026
This is the fourth major company to announce layoffs in January this year.
The job loss trend that companies struggled with in 2025 has continued in the new year as well.
Earlier, BlackRock said it planned to slash hundreds of jobs this month, after Meta announced it would cut 10% of its workforce in the Digital Labs division.
As per a Bloomberg report, quoting a person familiar with the development, the Meta job cuts are expected later this week.
Banking major Citigroup is also about to lay off around 1,000 employees this week as CEO Jane Fraser seeks to control costs and improve returns at the company.
