Excisely Crazy Layoffs, Ericsson Will Release 1,400 Employees Globally

JAKARTA - Ericsson will reportedly be the latest participant in a series of layoffs (PHK) in the technology industry, as the maker plans to cut about 1,400 workers in Sweden and other countries.

People familiar with the announcement claim that in the coming days thousands of employees will be laid off in various countries.

This large layoff at Ericsson comes after nearly 6 years, as in 2017 when the company laid off thousands of employees and focused on research to withdraw the company from losses.

This new decision was taken due to a global demand for 5G equipment, especially in high-margin markets such as the United States (US).

The telecommunications company hopes to save $870 million later this year, which is likely to continue by reducing overhead costs such as office spaces, and separating from some of its employees aka layoffs.

"This is different from geography to geography, some from now on, and we will take it unit by unit, given labor laws in various countries," Ericsson's Chief Financial Officer Carl Mellander told Reuters.

Ericsson estimates the decline in margins in the Network business will last until the first half of 2023, and the effects of cost-saving measures are claimed to be visible in the second quarter.

An Ericsson spokesperson also said the company had completed negotiations with the Swedish union, and layoffs would be carried out through a voluntary program, which is in the process of rolling out to employees through managers in the coming days.

For your information, Ericsson is just the latest in an unfavorable trend that has led big tech companies to reduce the number of their employees and take other cost cuts.

A number of other major tech companies have announced cuts between 5 to 10 percent in recent months, with some even pushing these numbers higher, such as Meta, Google, Amazon, Twitter, and Microsoft.