Telecom equipment maker Ericsson plans to lay off 8,500 of its employees globally to cut costs, according to a memo sent to employees from the company’s CEO Börje Ekholm.
“The way headcount reductions will be managed will differ depending on the local country practice,” Ekholm wrote.
According to Reuters, the layoffs are predicted to affect North America and would be the largest to hit the telecom industry. The company announced Monday that about 1,400 jobs in Sweden will be slashed as well.
“In several countries, the headcount reductions have already been communicated this week,” he said.
Ericsson is the latest telecom company to lay off workers in an industry that increased its inventory during the height of the pandemic.
“It is our obligation to take this cost out to remain competitive,” Ekholm said in the memo. “Our biggest enemy right now may be complacency.”
The company announced back in December that it had plans to cut costs by $880 million by the end of 2023 for demand to slow, Reuters reported.
Ericsson did not immediately respond to a request for comment.