STOCKHOLM: Ericsson plans to cut some 1,600 jobs in Sweden, the telecommunications equipment maker said on Thursday, doubling down on recent cost-saving measures that have helped it weather a prolonged downturn in telecoms spending.
Ericsson has been steadily reducing headcount over the past three years to maintain profitability as it grappled with a slowdown in 5G spending and the impact of U.S. import tariffs.
"The notice in Sweden is one of several global initiatives aimed at improving the company's overall cost structure to maintain important investments that will secure our competitiveness and technology leadership," a company spokesperson told Reuters in an emailed statement.
Ericsson has submitted a notice to the Swedish Public Employment Service and initiated negotiations with relevant trade unions.
"Initiatives to increase operational efficiency will continue across the group but will not be announced separately," it said in a statement. In Sweden, where Ericsson is based, the company had already announced plans to lay off 1,400 employees in 2023 and 1,200 in 2024.
As of December 31, the group employed around 90,000 people globally, of which about 12,600 in Sweden. That compares with nearly 100,000 employees three years ago.
RESTRUCTURING BOLSTERS ERICSSON'S MARGINS
Shares in Ericsson rose 1.7% in early Stockholm trading on Thursday. The Swedish company's stock lost 3% of its market value in 2025, lagging its Nordic rival Nokia which gained more than a fifth in value last year as it launched a new strategy focused on artificial intelligence, despite losing U.S. market share to Ericsson.
In a note ahead of earnings reporting, J.P. Morgan analysts listed cost savings as one of the upsides for Ericsson that could drive an earlier-than-expected turnaround in margins.
Ericsson will publish its fourth-quarter results on January 23. - Reuters
