The company wants to reduce its costs to $860 million.
Swedish telecommunications company Ericsson confirmed to CNBC today that it will lay off 8,500 workers as part of cutting operating costs.
Reuters earlier reported that the layoffs They are expected to affect around 8% of its 105,529 global workforce.
An Ericsson spokesman said the cuts were part of “accelerating efforts to reduce structural costs” and that most of the redundancies they will take place in the first half of 2023. However, job cuts could continue into 2024, according to the same source.
“Our goal is to manage the process in each country with fairness, respect , professionalism and in accordance with local labor laws. Any impact on employees will be communicated to them first,” said the Ericsson spokesman.
The company wants to reduce its costs to $860 million by the end of the year and estimates that its first results savings will begin to show in the second quarter of 2023.