Photographer | Assortment | Getty Photos
Swedish telecom firm Ericsson will lay off 8,500 staff as a part of its cost-cutting measures, the corporate confirmed to CNBC on Friday.
Reuters earlier reported on the layoffs, which can have an effect on roughly 8% of its workers of 105,529 worldwide. The corporate employs about 11,994 folks in North America, based on its web site.
An Ericsson spokesperson mentioned the cuts have been a part of an “acceleration of structural value reductions efforts” as introduced through the firm’s Capital Markets Day on Dec. 15. The spokesperson mentioned a lot of the layoffs would take impact within the first half of 2023 however might additionally lengthen into 2024.
“The best way headcount reductions will probably be managed will differ relying on native nation observe,” the spokesperson mentioned in an announcement. “Our intention is to handle the method in each nation with equity, respect, professionalism and according to native labour laws. Any influence to workers will probably be first communicated to them.”
The corporate is looking for value reductions at a run-rate of 9 billion Swedish kronor, or about $860 million, by the top of 2023. Ericsson mentioned it expects to start out seeing the impact of its value financial savings within the second quarter of this 12 months.
Subscribe to CNBC on YouTube.
WATCH: Europe is falling behind on 5G, Ericsson CEO says