Amidst the shadow of the Recession, the period of layoff in companies worldwide has been going on since last year, and now another big name has been included in their list.
Ericsson, the telecom equipment manufacturer, has made a plan to show the way out to thousands of employees and has announced it. This decision has been taken citing cost-cutting.
Preparation to remove 8500 employees
According to a Reuters report, the Swedish telecom maker has prepared a list of layoffs of 8,500 employees globally. Under this, the jobs of 1,400 employees can only go to Sweden.
After this big retrenchment decision, Ericsson joined the list of companies like Google, Facebook (Meta) and, Microsoft, Alibaba, Amazon. Significantly, these companies have also fired thousands of employees.
Most of the employees will be out this year
According to the report, by the end of 2022, the company had a total workforce of 1,05,000 employees. Now 8,500 are being cut out of this.
Amidst the fear of global Recession and inflation, companies are taking retrenchment decisions one after the other to reduce costs.
Regarding Layoff from Ericsson, it has been said that most employees will be laid off in the first half of this year. And the rest of the employees will be fired in 2024.
I decided to cut costs!
The Swedish company has planned to cut its expenses due to adverse economic conditions globally and the introduction of a new 5G network.
It has also been clearly stated on behalf of the company that this reduction is part of the program to cut costs because, due to adverse economic conditions, we are forced to rein in the expenditure.
On behalf of the company, the spokesperson said that the information about this reduction of the employees was given earlier this week.
Ericsson CEO Borje Ekholm wrote in a memo sent to employees, ‘The reduction in the number of employees will be managed on a country-by-country basis.
In many countries, a reduction in the number of employees has already been reported this week.
According to Reuters, Ekholm further said it is necessary to take this decision to remain competitive in the market and save costs.
In an earlier report, Ericsson’s Chief Financial Officer Carl Mellander said that cost-cutting would include reducing the number of advisors, real estate and employees.
The list was prepared in Google-Microsoft also
Google also announced the reduction of 12,000 employees from its workforce last month before Ericsson.
On January 20, Google CEO Sundar Pichai, in a letter written to the employees, expressed his consent to the layoff decision and said that the company is going through difficult economic times like ours.
Microsoft is also the latest and prominent name in the phase of decrease, which has announced a reduction in the number of employees by 10,000.
