Ericsson decided to reduce 8% of its workforce because of slowing orders for its 5G network in several nations, including the US worldwide. According to a communiqué from a Swedish company, it will retrench 8,500 employees in 2023 and next year. It also announced plans for laying off 1,400 employees in Sweden a few days ago.
In today’s latest news, Ericsson, which engages in the sale of telecom equipment, said the company aims to respect the local labor regulations in each nation where it operates worldwide. It will also ensure professionalism and fairness in its operations.
Slower rollout necessitates cost-cutting measures
In a communiqué last year, Ericsson said it planned to utilize fewer consultants while streamlining processes and shutting down some facilities to save around $861 million. In January 2023, Börje Ekholm, CEO of Ericsson, said the rollout of 5G was sluggish, though the company had invested significant funds in the next-generation wireless technology.
A spokeswoman for Ericsson, Jenny Hedelin, said the company will lay off employees in various categories. It was reported last month that several telecom operators in North America have held off their orders for 5G equipment, citing economic uncertainty.
Several cellular companies spanning the Middle East, China, and the US have already implemented 5G networks. Some of them have used Ericsson equipment for their 5G rollouts to provide faster speeds on wireless networks to their valued customers. It is observed that nations that have already rolled out 5G are not enjoying higher speeds on their wireless networks.
Ericsson to showcase network-related demos
According to the most recent BNN News, Ericsson has decided to attend the Mobile World Congress 2023 to demonstrate its latest networks, allowing customers to enjoy faster speeds. It will highlight how to monetize 5G, expedite the rollout of the networks, and create a vision for the future using its sophisticated technology. Several dignitaries and experts from various industries are expected to attend MWC 2023 in Barcelona. Around 80,000 visitors from nations across the world are expected at MWC 2023.
Ericsson will showcase its ERS (Ericsson Radio System) tower and hardware wall at MWC 2023. It will demonstrate its latest products, such as its transport and RAN (Radio Access Network) portfolios, that find use in both indoor and outdoor applications. It will also showcase the comparison between the upcoming multiband and single-band radios and baseline products, apart from the 5G smart portal car. The visitors can also experience a demo of several energy-efficient solutions from Ericsson.
It will provide a glimpse into the latest technologies like 6G and other innovative technologies that revolutionize the telecom industry and benefits industries and users across the world. The company has already invested in fixed wireless, innovative 6G, and so on.
Weak demand for products and services forces layoffs
Several industries and technology companies around the world are laying off workers and implementing cost-cutting measures to stay in business. Amazon, the e-commerce behemoth, and Alphabet Inc., Google’s parent company, are among the companies that have laid off thousands of workers in recent months due to decreased demand for their products or slowed growth.
