Ericsson Layoff: Telecom hardware maker Ericsson has now decided to lay off. The company will lay off 8500 employees worldwide to cut down on its expenses. The company has issued a memo to the employees in this regard.
Ericsson announced the layoff of 1400 employees in Sweden on Monday this week. But a few days after that, the company has decided to lay off 8500 employees worldwide. The company’s chief executive Borje Ekholm wrote in a memo sent to the employees that the retrenchment will be done on the basis of the practice of that country and its method will be different in different countries. He told that in many countries the information about retrenchment of people has already been given.
In recent times, in view of the global economic crisis, many technology companies have laid off thousands of employees and this will be the biggest layoff in the telecom industry. The results announced by the company for the fourth quarter were below expectations. There has been a decrease in the demand for 5G equipment in other regions including America.
Due to the decrease in demand for telecom equipment, the company has decided to reduce the expenditure by 880 million dollars by the end of 2023. The company has made it clear that the company will cut expenses through retrenchment. The company had indicated earlier also that the company would reduce its cost through reduction in the number of consultants, from real estate to retrenchment.
