Ericsson laid off 8,500 employees
In accordance CNN, Personnel changes will take place worldwide and will affect 8% of Ericsson’s 105,529 employees. This move aims to save $859 million in operating expenses by the end of the year.
A spokesman for the Swedish telecom company said the layoffs would take place in the first half of this year. The discount amount depends on the number of employees and the current situation in each country. Since February 20, the company has laid off 1,400 employees in Sweden.
Earlier in its financial report for the fourth quarter of 2022, Ericsson said that while sales increased, profits fell due to declining sales of 5G devices. The company estimates that the situation will remain negative in the first half of 2023.
This isn’t the first time Ericsson has made major personnel changes. In 2017, they laid off thousands of employees to make the company profitable again.
The wave of layoffs continues to permeate the entire technology industry, from startups to large corporations like Microsoft, Google, Meta, Amazon. It is estimated that more than 150,000 US tech workers lost their jobs in the first month of this year.
In accordance edge, most tech companies are blaming the poor economy and excessive staff growth during the pandemic, forcing them to undertake a lean restructuring. Jeffrey Pfeffer, a Stanford University professor, describes this wave as “technology companies copying each other.”
“Shields can protect CEOs’ reputations and reassure investors, but they hurt employees, including well-paid ones. They’re detrimental to careers, mental health and physical health,” said Ed Zitron, CEO of multinational technology and public relations firm EZPR. people in business.