With operations in over 180 countries, it employed around 100,000 people. The company has been a major player in the development of mobile technology, including the development of the GSM standard for mobile communication. Despite the problems, it continues to innovate in the areas of 5G, IoT and cloud services.
Another company will reduce the number of employees
The manufacturer announced this Monday, the 20th, that it will lay off about 1,400 employees in Sweden to ease the costs of the operation. According to the group, the reduction in staff was caused by the low demand seen in recent times. According to TechRadar, everything surfaced after Ericsson entered into an agreement with local unions.
The reduction will be carried out through a voluntary program. The company pledged to offer extra value to employees. In addition, it will assist them in transitioning to other jobs after dismissal. The shutdowns will help cut an estimated $870 million, including office rental and related service costs. All this was decided after a slowdown in sales in some regions.
Despite the shutdowns, the company is not expected to shut down in Sweden. That's because Ericsson plans to carry out the same procedure in other markets where it operates. This attitude has been common in other technology, telecommunications and related companies. They think about starting or initiating new rounds of mass layoffs.
Companies like Google, Microsoft and Xiaomi have been on the bandwagon for some time.
