The company said this proposed staff reduction is part of a global initiative to improve its cost position, while maintaining investments critical to Ericsson’s technology leadership.
The company “expects a challenging mobile networks market in 2024”, with further volume contraction as customers remain cautious. As such, initiatives to increase operational efficiency will continue during 2024. Ericsson said detail on those initiatives “will not be announced separately”.
The company did explain that cost saving initiatives cover various areas such as reduction of consultants, streamlining of processes, and reduced facilities.
At the same time, Ericsson will look to keep 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 enterprise.
Ericsson has initiated negotiations with the unions in Sweden in preparation for reducing its headcount.