In February 2023, the Swedish telecommunications company Ericsson announced to its employees that it would lay off 8,500 employees globally as part of its plan to cut costs, much like other industrial counterparts already have, including Microsoft, Meta and Alphabet. Now, according to a Worker Adjustment and Retraining Notification (WARN) submitted by Ericsson and acquired by The Dallas Morning News, the company will cut 750 jobs across the U.S.
Reuters reports that this is part of a cost-cut plan announced by the company in December 2022, with expectations of reducing $880 million by the end of 2023. Ericsson employs more than 105,000 people worldwide, of which some 12,000 are located in the U.S. Layoffs began earlier this year when 1,400 jobs were cut in Sweden. While other companies in the industry have similar cost-cutting plans, Ericsson’s move is the largest layoff to hit the industry so far.
According to The Dallas Morning News, Ericsson, whose North American business headquarters is based in Plano, is shutting down its self-provided U.S. field services operations by October 1. In its WARN notice, the company stated that the change would provide “added flexibility, reduce costs and simplify our operations, allowing us to operate more efficiently and better serve the changing needs of our customers.” The decision will result in a cut of 64 jobs at the Legacy Drive facility in Plano.
In 2022, the increase in demand for telecom equipment brought by the pandemic started to slow down. "It is our obligation to take this cost out to remain competitive," Chief Executive Borje Ekholm explained in a memo to employees announcing the layoffs in December 2022. "Our biggest enemy right now may be complacency."
The Dallas Morning News adds that the company announced its commitment to aid laid-off employees by facilitating connections with its network of Authorized Service Providers, helping them in their search for new job opportunities.
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