Ericson (NASDAQ:ERIC) plans to reduce its workforce by 1,200 due to “a challenging networking market in 2024,” the company announced Monday.
stock market shares fell 1% during pre-market operations. has decreased approximately 60% during the last three years.
The Stockholm-based telecommunications company He also expects “further volume contraction as customers remain cautious.” Ericsson has begun negotiations with unions over 1,200 layoffs that will affect its employees in Sweden.
“In addition to headcount reduction, cost savings initiatives cover several areas such as consultant reduction, process rationalization and facility reduction, as Ericsson continues to execute its strategy to achieve a higher growth trajectory and achieve margin.” long-term objectives, through leadership in mobile networks and focused expansion in the enterprise space,” the company said in a statement.
Ericsson has around 100,000 employees, 14,500 of them in Sweden, and customers in 180 countries.
Ericsson had recently landed a major deal with AT&T for Open RAN deployments, but that enthusiasm has since died down.
“ERIC is expected to struggle in 2024 due to global economic conditions, geopolitical uncertainty and focus on cost savings by shippers,” according to DM Martins Research.
So far this year, 219 tech companies have laid off more than 51,000 employees, according to tech Layoff Tracker. Dismissal.for your information. This is significantly less than last year, when more than 167,000 employees in the technology field were laid off during the first three months of 2023.