The Swedish telecom company has already cut about 5,000 jobs in the last year and anticipates more reductions, Ekholm mentioned in a call reported by Reuters.
Earlier this year, Ericsson announced it would cut up to 1,600 jobs in Sweden and started talks with unions. The company stated that these cuts are needed to stay competitive long term.
Despite slow demand from telecom companies and lower 5G spending, Ericsson has stayed profitable through cost-cutting and better margins. They've been cutting staff for the past three years because carrier spending on 5G didn't meet expectations, and global trade issues, like US tariffs, affected the industry.
In 2023, Ericsson announced a plan to cut 8,500 jobs globally, about 8% of its workforce. Since then, there have been additional layoffs in countries like Spain and Canada.
Ericsson's ongoing downsizing is part of a larger trend, with companies like Meta, Amazon, BlackRock, and Citigroup also announcing job cuts to control costs and adjust to slower growth.
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