Layoffs
Ericsson, a manufacturer of telecommunications equipment, is set to reduce its expenses by terminating 8,500 employees worldwide, according to a memo seen by Reuters.
The sack will be the biggest to hit the telecom industry. Top tech companies like Meta, Microsoft, Twitter and Alphabet have laid off thousands of workers in one go citing economic slowdown and weakening demand.
"The way headcount reductions will be managed will differ depending on local country practice," Chief Executive Borje Ekholm wrote in the memo, according to Reuters.
"In several countries, the headcount reductions have already been communicated this week," he said.
On Monday, the organisation, which has a workforce of over 105,000 people across the world, declared its intention to eliminate approximately 1,400 positions in Sweden.
According to analysts, emerging markets like India are likely to be impacted the least while North America likely to be worst affected, said the report.
The company said in December it would cut costs by 9 billion crowns ($880 million) by the end of 2023 as demand slows in some markets, including North America.
"It is our obligation to take this cost out to remain competitive," Ekholm said in the memo, according to Reuters. "Our biggest enemy right now may be complacency."
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