Ericsson to lay off 1,200 employees in Sweden

Ericsson expects to cut around 1,200 staff in Sweden, in a bid to lower its costs ahead of a predicted slowdown in the mobile networks market this year, Report informs referring to MarketWatch.

In a statement, the telecoms company said it has started talks with unions to cut around 1,200 of the approximately 14,500 staff it employs in Sweden - equivalent to around 8% of its workforce in the Scandinavian country.

In explaining its rationale, Ericsson said the cuts are aimed at managing the impacts of the "challenging mobile networks market" it faces in 2024, which it previously said could lead to a 10% drop in its full-year sales.

Shares in Ericsson fell 1% on March 25, and were down 10% of their value over the previous 12 months.

The Stockholm-headquartered company, which currently employs around 100,000 people worldwide, said the plans sit in line with wider cost-saving initiatives that will see it cut spending on consultants and cut jobs in other regions.