STOCKHOLM, March 25 (Xinhua) -- Ericsson is set to lay off around 1,200 employees in Sweden to cut costs, the telecommunications company said on Monday.
"Ericsson expects a challenging mobile networks market in 2024, with further volume contraction as customers remain cautious," the Stockholm-based company said.
Negotiations with unions have been initiated. Meanwhile, other measures to cut costs, such as reducing the number of consultants and facilities and streamlining processes, will also be implemented, Ericsson said.
Ahead of the Mobile World Congress 2024 in late February, Ericsson Executive Vice President and Head of Business Area Networks Fredrik Jejdling said that revenue growth from 5G is limited.
"While we see 5G subscriptions growing fast globally, new 5G revenue growth is still limited, and the reality is that to date, only 28 percent of 4G sites have been upgraded to 5G mid-band -- and mid-band is crucial to scaling up 5G connectivity," Jejdling said.
Founded in 1876, Ericsson has 105,000 employees worldwide, of which 14,500 are in Sweden.
The company has customers in 180 countries and generated 271 billion Swedish kronor (25.6 billion U.S. dollars) in net sales in 2022.
