According to Recent Reports, Ericsson Is Planning To Fire 1,400 Employees

Newslatestworld.com – Due to the unstable state of the global economy, the surge of layoffs (PHK) sweeping through the technology industry continues.

Recent reports have indicated that the Swedish provider of hardware and services for telecommunications, Ericsson, will be terminating the employment of approximately 1,400 workers in their home country.

According to the most recent report from the Reuters news agency, this information stands out. It was stated in the report that the massive layoffs being implemented by Ericsson would also affect several countries around the globe in which Ericsson maintains operational bases.

However, Ericsson is rumored to be planning to disclose layoffs in other countries very soon. This will ensure that the 1,400 employees rumored to be let go will come solely from Sweden.

The lackluster demand for technology or devices supporting 5G that Ericsson has been producing around the globe, including in the United States, is reportedly what led to the layoffs of employees at Ericsson. Reuters reported this to be the case (US).

The decreased sales of Ericsson’s products or technology forces businesses to automatically implement cost-cutting measures to continue operating and avoid going bankrupt. According to reports, Ericsson intends to cut its budget equaling approximately 9 billion Swedish Krona, equivalent to approximately Rp. 13.2 trillion in the year 2023.

These cost reductions can, of course, be accomplished in various ways; one is by terminating the employment of thousands of Ericsson workers in Sweden earlier. It has been reported that Ericsson is discussing layoffs with different parties in Sweden.

According to a summary provided by KompasTekno from Reuters on Wednesday (22/2/2023), former employees of Ericsson who were let go will eventually receive some of the rights to which they are entitled, including severance pay, insurance, work transition fees, and so on.

In addition to Ericsson, several other technology businesses, including Ericsson’s competitors, have also announced that they will be laying off some of their employees. Amazon, Microsoft, Google, Facebook, and Twitter are just some companies in this category.

According to information obtained from Layoffs.fyi, a website that calculates the number of employees laid off from technology businesses, approximately 389 technology companies have let go of approximately 108,000 employees in 2023.

This number will probably continue to rise, particularly if the global economy and other issues connected to world finances do not improve.

Souce : Reuters