Ericsson to cut 1400 jobs in Sweden as part of cost-cutting plan
The company's shares continue to fall
Telecommunications equipment maker Ericsson AB will cut 1,400 jobs in Sweden as part of a previously announced cost-cutting plan, The Wall Street Journal reports, citing a company spokesman.
Ericsson has concluded negotiations with Swedish trade unions and expects that the staff reduction will be carried out through voluntary layoffs.
Earlier, the company announced its intention to achieve cost savings of SEK 9 billion ($860.8 million) by the end of 2023 by optimizing operations, reducing occupied premises and staff.
In January, Ericsson warned that its near-term outlook was uncertain as telecom operators, including those in its important North American market, are cutting back on capital expenditures in light of the challenging macroeconomic environment and are likely to continue to optimize inventories.
Ericsson's shares are losing 0.2% in value in Stockholm on Monday. Over the past 12 months, their value has fallen by 33%.
Background. Earlier it became known that the withdrawal of Nokia and Ericsson from Russia would cause communication problems for ordinary Russians.
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