Ericsson to cut 1,200 jobs in Sweden as 5G sales falter
26 March 2024 16:03
The Swedish conglomerate Ericsson is set to lay off around 1,200 employees in Sweden as part of its cost-cutting measures announced at the start of 2024. This decision comes amid slowing 5G network sales in North America, and the company does not rule out the possibility of further job cuts.
According to Reuters, Ericsson will soon dismiss 1,200 people. This move follows a board decision to implement cost-cutting measures due to diminishing demand for 5G network infrastructure. The job cuts will affect 9% of the company's workforce in Sweden, with a warning of potential additional layoffs.
5G’s success was expected to be monumental
Ericsson has declared that the company anticipates a difficult mobile network market in 2024, attributed to a further decline in demand as customers become more cautious. Reuters also mentioned that the Swedish conglomerate plans to continue efficiency-improvement initiatives throughout 2024.
Analysts interviewed by Reuters suggest that more layoffs are on the horizon, possibly extending into 2025, all due to challenges faced by the mobile infrastructure market.
"Let's be honest, 5G has not lived up to the monumental success everyone had hoped for," observed analyst Paolo Pescatore from PP Foresight.
