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Swedish telecommunications company Ericsson confirmed to CNBC on Friday that it will lay off 8,500 employees as part of its cost-cutting measures.
Reuters previously reported layoffs staff 105,529 worldwide. The company employs approximately 11,994 people in North America, According to its website.
An Ericsson spokeswoman said the cuts were part of an “acceleration of structural cost reduction efforts”, as announced at Capital Markets Day on December 15. A spokesman said most of the layoffs he said would take effect in the first half of 2023, but have been extended through 2024.
“The way we manage job cuts will vary according to national practices,” the spokesperson said in a statement. “Our aim is to manage our processes in all countries with fairness, respect, professionalism and in line with local labor laws. increase.”
The company aims to save SEK 9 billion (about $860 million) by the end of 2023. Ericsson expects cost savings to begin to materialize in the second quarter of this year.
Watch: Europe lags behind in 5G, says Ericsson CEO
