Telecom equipment major Ericsson on Thursday announced plans to lay off around 1,600 employees in Sweden as part of a broader effort to reduce costs and
protect profitability amid a prolonged slowdown in the global telecoms market. The company said it has submitted a formal notice to the Swedish Public Employment Service and has begun negotiations with relevant trade unions. “Approximately 1,600 positions could be impacted in Sweden. The company has initiated negotiations with the relevant Swedish trade unions,” Ericsson said in a statement. Ericsson added that efforts to improve operational efficiency will continue across the group, though such initiatives may not be announced individually. Why Ericsson is cutting jobs In a press release, Ericsson said the proposed layoffs are part of its global initiatives to strengthen its “cost position” and ensure long-term competitiveness. The company noted that staff reductions in Sweden are aimed at safeguarding its market position while navigating challenging industry conditions. The telecom equipment maker has been under pressure for several years as demand from telecom operators has remained weak, with 5G investments falling short of earlier expectations. The cost-cutting measures, Ericsson said, will also help preserve investments critical to its technology leadership and support its strategy of delivering high-performing, programmable networks that enable new services and monetisation opportunities. Ericsson has steadily reduced its workforce over the past three years to maintain margins amid slowing 5G spending and the impact of US tariffs. In 2023, the company announced a global plan to cut 8,500 jobs—about 8% of its workforce—followed by further layoffs in markets such as Spain and Canada last year. The company’s shares have declined around 8.5% over the past 12 months. Layoffs continue into 2026 Ericsson is the fourth major company to announce job cuts in January 2026, underscoring that the wave of layoffs seen in 2025 has carried into the new year. Earlier this month, BlackRock said it would cut hundreds of jobs, while Meta announced plans to reduce its Digital Labs division by 10%, with the cuts expected later this week. Banking giant Citigroup is also preparing to lay off about 1,000 employees as CEO Jane Fraser pushes to rein in costs and improve returns.
