Ericsson, a Swedish multinational networking and telecommunications company plans to cut 1,200 jobs due to decreased demand.
The company expects a challenging mobile networks market in 2024, with further volume contraction as customers remain cautious.
In line with managing lower volumes, the company has announced proposed staff reductions in Sweden.
This measure is part of the global initiatives to improve the cost position, including headcount reductions, while maintaining investments critical to Ericsson’s technology leadership. Initiatives to increase operational efficiency will continue during 2024 but will not be announced separately.
The company said, “In addition to the headcount reduction, the cost-saving initiatives cover various areas such as reduction of consultants, streamlining of processes, and reduced facilities, while Ericsson keeps executing on its strategy to achieve a higher growth trajectory and to reach the long-term margin targets, through leadership in mobile networks and a focused expansion into the enterprise.”
“As part of these ongoing global initiatives, Ericsson now announces a headcount reduction of approximately 1,200 in Sweden. The Company has initiated negotiations with the unions”, the company added.
On the contrary, Paytm has denied reports of reducing staff by 25-50% in specific business segments, refuting allegations of workforce downsizing.
A spokesperson said, “The claims of layoffs affecting 50% of our workforce are unfounded and misleading.”
“We urge our stakeholders and the public to rely on factual and verified information from official sources and disregard speculative narratives,” a spokesperson added.
The company’s Senior Vice President of Business, Praveen Sharma, formally stepped down from his position.
So far in 2024, there have been 406 layoffs at tech companies with 70,813 people impacted (823 people per day).
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