Ericsson's workforce will lose 8,500 employees

even if the technology is moving forward with the passage of time, companies must still take their precautions and act rationally. And it is with this in mind that the technology company Ericsson will dismiss 8,500 employees from its staff. The main reason for the decision is cost cutting. See in more detail below.

Layoff of 8,500 Ericsson employees scares

First, let's understand who it is: Ericsson is a technology company, controlled by Sweden, which manufactures fixed and mobile telephony equipment. It is a world leader in the telecommunications industry and was founded as a telegraph repair shop by Lars Magnus Ericsson.

Why did the company decide to lay off so many people?

Specialized in telecommunications, Ericsson will lay off around 8,500 employees around the world to try to reduce the expenses it is having. As CEO Borje Ekholm said, headcount reductions will depend on the practice in each country.

Therefore, there will not be a universal rule that will be applied in all branches.

Have the cuts started yet?

Borje added that the reduction in the number of people working for them was already communicated this week in several countries. On Monday, the 20th, for example, the company announced that around 1,400 jobs in Sweden would be revoked. It is noteworthy that Ericsson currently employs more than 105,000 people across the world.

Which region will be least affected?

It has not been announced which area will see the most cuts, but analysts predict the rates will be the highest in North America. Growth markets will be the least affected, as is the case in India.

Ericsson plans to cut costs by $880 million by the end of 2023. Ekholm said this reduction will be necessary for the company to remain competitive. For him, the biggest enemy now may be complacency.

It is important to mention that the cuts, in addition to involving employees, will also affect consultants and real estate.