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Swedish telecom company Ericsson will lay off 8,500 employees as a part of its cost-cutting measures, the corporate confirmed to CNBC on Friday.
Reuters earlier reported on the layoffs, which is able to affect roughly 8% of its staff of 105,529 worldwide. The corporate employs about 11,994 people in North America, in line with its website.
An Ericsson spokesperson said the cuts were a part of an “acceleration of structural cost reductions efforts” as announced in the course of the company’s Capital Markets Day on Dec. 15. The spokesperson said a lot of the layoffs would take effect in the primary half of 2023 but could also extend into 2024.
“The way in which headcount reductions shall be managed will differ depending on local country practice,” the spokesperson said in an announcement. “Our aim is to administer the method in every country with fairness, respect, professionalism and in keeping with local labour laws. Any impact to employees shall be first communicated to them.”
The corporate is looking for cost reductions at a run-rate of 9 billion Swedish kronor, or about $860 million, by the top of 2023. Ericsson said it expects to begin seeing the effect of its cost savings within the second quarter of this 12 months.
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