Amid continued pressure on global telecom spending, Ericsson has announced a fresh round of job cuts as it tightens costs to protect profitability and long-term competitiveness.
The Swedish telecom equipment maker said it plans to reduce around 1,600 jobs in Sweden, deepening a restructuring drive that has been underway for the past 3 years. The move is part of broader cost-saving efforts as the company navigates a prolonged slowdown in 5G investment and the impact of U.S. import tariffs.
Ericsson confirmed it has submitted a formal notice to the Swedish Public Employment Service and has begun negotiations with relevant trade unions. A company spokesperson said the decision is part of wider global actions aimed at improving efficiency. “The notice in Sweden is one of several global initiatives aimed at improving the company’s overall cost structure to maintain important investments that will secure our competitiveness and technology leadership,” the spokesperson said in an emailed statement to a news agency.
The company added that “initiatives to increase operational efficiency will continue across the group but will not be announced separately.”
In its home market, Ericsson has already carried out significant workforce reductions. The company announced plans to cut 1,400 jobs in 2023 and 1,200 jobs in 2024. As of 12/31, Ericsson employed around 90,000 people globally, including about 12,600 in Sweden. This compares with nearly 100,000 employees worldwide 3 years ago.
Investors reacted positively to the latest restructuring update. Ericsson shares rose 1.7% in early trading in Stockholm. Despite the uptick, the stock had lost about 3% of its market value in 2025, underperforming Nordic rival Nokia, whose shares gained more than 20% last year after unveiling a new strategy focused on artificial intelligence.
In a note ahead of upcoming earnings, analysts at a global investment bank said cost savings remain one of the key factors that could support an earlier-than-expected recovery in Ericsson’s margins.
Ericsson is scheduled to report its Q4 results on 01/23, with investors closely watching how restructuring efforts translate into financial performance.
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