Ericsson layoffs: CEO Borje Ekholm says telecom giant to continue job cuts amid 5G market woes

Swedish telecoms equipment maker Ericsson expects to continue laying off employees as part of its ongoing cost-cutting and restructuring efforts, CEO Borje Ekholm said on Friday.

“You have seen that we have reduced the headcount, for example, by 5,000 over the past year, and we expect to continue reducing headcount going forward,” Ekholm was quoted as saying in a post-earnings call by Reuters.

Earlier this year, Ericsson announced plans to cut up to 1,600 jobs in its home country of Sweden, a move aimed at ensuring the company's competitive position, the firm said in a press release.

These cost-saving measures have helped the company maintain profitability and deliver strong earnings, even as telecom operators continue to witness sluggish demand in the global 5G equipment market.

Previous round of job cuts

In mid-January, Ericsson submitted a notice to the Swedish Public Employment Service, stating that approximately 1,600 positions could be impacted in the country. It also initiated negotiations with relevant trade unions.

The telecom equipment maker has been working to cut costs and improve margins in recent years. The company struggled with weak demand, as anticipated carrier spending on 5G technology did not meet expectations, Mint reported earlier.

Ericsson has been steadily reducing headcount over the last three years to maintain profitability as it grappled with 5G spending slowdown and the widespread impact of sweeping US tariffs.

In 2023, the company announced a global plan to cut 8,500 jobs, equivalent to 8% of its workforce. The reductions have continued since then, with the company axing hundreds of staff in Spain and Canada last year.

5 top firms plan layoffs in 2026

Ericsson is not the first company to reduce its headcount, as at least five other major companies have also announced layoffs in January this year, reflecting a broader trend of cost-cutting across the corporate sector.

The job-loss trend that companies struggled with the previous year seems to have continued into the new year as well.

Earlier, BlackRock said it planned to cut hundreds of jobs this month, after Meta announced it would cut 10% of its workforce in the Digital Labs division.

Meanwhile, a Bloomberg report also said Meta's job cuts are expected later this week, citing people familiar with the matter.

Banking major Citigroup is also about to lay off around 1,000 employees this week as CEO Jane Fraser seeks to control costs and improve returns at the company, Mint reported.

In a more recent instance, Amazon also announced that it plans to slash around 30,000 white-collar jobs by next week. It said the layoffs may impact AWS, HR, Prime Video and retail segments of the company. However, the plans may still change, said a Mint report.