Ericsson plans layoffs in Sweden that'll affect at least 1,600 jobs

Ericsson AB plans to cut about 1,600 jobs, as the Swedish network equipment supplier looks to reduce its operational costs.

Ericsson AB plans to cut about 1,600 jobs, as the Swedish network equipment supplier looks to reduce its operational costs.

Ericsson headquarters in Stockholm, Sweden. (AFP)

The cuts will impact its Swedish workforce and the company has entered negotiations with unions, Ericsson said in a statement on Thursday.

Ericsson has been working to cut costs and improve margins in a difficult telecom-equipment market. The company, along with its Nordic competitor Nokia Oyj, has struggled with weak demand for years as anticipated carrier spending on 5G technology failed to materialize.

In 2023, the company announced a global plan to cut 8,500 jobs, equivalent to 8% of its workforce. Cuts have continued since then, with the company axing hundreds of staff in Spain and Canada last year.