Ericsson, a multinational technology company, has announced plans to lay off up to 750 people in North America later this year. This decision is part of the company’s global workforce reduction initiative, which was unveiled in February and involves a total of 8,500 job cuts worldwide.
According to a memo issued by Ericsson’s people operations team, all of its field services in the United States will be handled by ‘external providers’ beginning October 1, 2023. According to DCD, the separation date for this transition is September 29, 2023.
Despite this change, Ericsson’s commitment to delivering network services, such as site design, engineering, continuous preemptive support, and network optimisation, was emphasised in the memo.
The memo also recognised Ericsson’s self-perform capability, which was critical in accelerating local service delivery capabilities during the peak of the 5G cycle. The company’s commitment to quality and safety set a new standard for tower technicians in the United States. However, due to the recent decline in market demand, the cost of maintaining this one-of-a-kind capability can no longer be justified, prompting the decision to outsource to third-party providers.
Ericsson currently employs over 11,500 people in North America and has a global workforce of over 1,03,000 professionals.
As a result of these changes, Ericsson hopes to emerge stronger, better positioned to meet customer needs, and better equipped to deliver innovative solutions in the volatile telecommunications industry.