8,500 employees are to be cut

8,500 employees are to be cut

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Swedish telecommunications company ericsson will lay off 8,500 workers as part of its cost-cutting efforts, the company confirmed to CNBC on Friday.

Reuters previously reported the layoffs, which will affect around 8% of the company’s 105,529 employees worldwide. The company employs about 11,994 people in North America, according to its website.

An Ericsson spokesman said the cuts are part of an “acceleration of structural cost-cutting efforts” announced during the company’s December 15 Capital Markets Day. The spokesman said most of the layoffs would take effect in the first half of 2023 but could extend into 2024.

“The manner in which staff reductions will be handled will vary depending on local country practice,” the spokesman said in a statement. “Our aim is to conduct the process in each country with fairness, respect, professionalism and in accordance with local labor legislation. Any impact on employees will be communicated to them first.”

The company is targeting cost reductions of 9 billion Swedish kronor, or about $860 million, by the end of 2023. Ericsson said it expects to see the impact of its cost savings in the second quarter of this year.

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