London: Ericsson, a global telecom equipment maker, has decided to lay off about eight and a half thousand employees in Sweden.
Earlier, technology companies like Microsoft, Meta and Alphabet have also laid off thousands of employees due to the economic situation, but this move by Ericsson may affect the telecom industry to a large extent.
A foreign news agency According to the report A spokesperson for the Ericsson company said that the decision to lay off employees was made as part of a strategy to reduce rising costs.
Earlier last Monday, the company, which currently employs more than 15,000 people worldwide, announced plans to cut about 1,400 jobs in Sweden.
While Ericsson did not reveal which countries would be most affected, analysts predicted that North America would be the most affected and emerging markets such as India would be least affected.
The company said in December last year that it would cut costs by 9 billion crowns ($880 million) by the end of 2023 as demand slows in some markets, including North America.
According to a report by a foreign news agency, sources say that thousands more layoffs will undoubtedly be announced in other countries in the coming days. The last time Ericsson started mass layoffs was in 2017.
The spokesperson says that the company and the Swedish Labor Organization have been in talks for several months about reducing costs and now an agreement has been reached with the Swedish unions to handle the whole situation.