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Ericsson joins the wave of layoffs in tech and will lay off 8,500 workers

Date: April 2, 2023 Time: 08:11:00

The Swedish company Ericsson is planning the rapid of 8,500 workers worldwide with the aim of containing its costs after the paralysis of the market for equipment for telecommunications. However, the scope that these layoffs will have on the Spanish workforce, which is made up of more than 2,200 employees, is still unknown.

Most of these workforce definitions, advanced by Bloomberg, will be undertaken in the first part of this year, while the rest will take place in 2024. The process is part of a plan to save 9,000 million Swedish crowns (814, 2 million euros).

“We see the potential to simplify and streamline the company’s internal processes, especially with regard to structural costs,” company spokesperson Jenny Hedelin explained by email. Previously, it was expected that the savings would come from lowering the costs of the products marketed.

The Swedish manufacturer recorded a profit of 1,678 million euros in 2022, 21.2% less, and the president and CEO of Ericsson, Börje Ekholm, justified it in “short-term uncertainty” for still being in “a early phase of the global use of the 5G network”.

In addition, the Scandinavian company then warned that the problems with the US Justice, for which it has already provisioned some 200 million euros against a possible fine from the Department of Justice and with other regulatory bodies, could lead to Ericsson “paying significant compensation, mully and/or sanctions.

At the national level, the company has a notable presence within the Spanish territory, where there are more than 2,200 employees distributed among the R&D centers located in the territories of Madrid, Malaga and Barcelona. However, these templates are not the one with the greatest presence at European levels, since the branches in Sweden total more than 400 offices.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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