Ericsson layoffs in Sweden could affect around 1,600 positions, the Swedish telecom equipment group said on Thursday, as it starts consultations with unions and files a notice with the Swedish Public Employment Service (Arbetsförmedlingen). The proposed reduction is part of a broader cost-efficiency drive meant to protect Ericsson’s competitiveness in a telecom market that has remained tight after the 5G investment cycle cooled.
Proposed layoffs could affect more than one in ten employees
Ericsson said the proposed cuts would impact its Swedish operations, where the company employs about 12,600 people. If fully implemented, the reduction would amount to roughly 10–13 percent of Ericsson’s workforce in Sweden.
In its statement, Ericsson framed the move as part of “global initiatives” to improve its cost position, while keeping investments that are considered critical for technology leadership and for its strategy around high-performing, programmable networks.
Consultations with unions start, with timelines still unclear
The company said it has opened negotiations with relevant Swedish trade unions, a mandatory step in Sweden’s labour-market model before dismissals can be finalised. Ericsson also submitted the formal notice to Arbetsförmedlingen.
Union representatives told Swedish media that staff were largely taken by surprise. Per Norlander, group union negotiator for Swedish Engineers (Sveriges Ingenjörer), warned that the cuts risk landing directly on core business and research and development, and criticised the way the process began.
Ericsson layoffs in Sweden follow earlier reductions in 2023 and 2024
The announcement adds to a series of workforce reductions in Sweden in recent years. Ericsson previously announced around 1,400 job cuts in Sweden in 2023 and a further 1,200 in 2024.
For international readers, Ericsson is one of Europe’s flagship telecom vendors. It supplies mobile network infrastructure, software and services, and has been a central player in 4G and 5G rollouts globally.
Competitive pressure in the telecom market remains a key driver
Analysts and company representatives have pointed to sustained competitive pressure among network equipment suppliers, with operators keeping a close watch on spending and vendors facing inflation-driven cost pressure.
Ericsson’s shares rose in early trading after the announcement, reflecting expectations in the market that further cost discipline could support margins. The company is scheduled to publish its fourth-quarter results on 23 January.
