Ericsson (NASDAQ:ERIC) layoffs are coming to the company’s Sweden offices as it looks to reduce its headcount.
The big news here is the company cutting 1,400 jobs as it looks to reduce operating costs by 9 billion crowns by the end of the year. Adding to that, the company is reportedly planning for more layoffs that will affect global workers.
Insiders report that Ericsson has been planning for layoffs for some months now. However, the company had to complete negotiations with unions before making the cuts. Those negotiations are over, which is why the workforce reductions are going into effect.
What’s Behind the Ericsson Layoffs?
Ericsson is cutting jobs as it sees a decrease in demand in certain regions. That includes North America. This ties together with an economic slowdown affecting more than just this company.
Ericsson is joining a larger trend with its layoffs. Several companies are cutting jobs as they deal with inflation, rising interest rates in the U.S., and recession concerns. Tech companies are being hit especially hard by the current state of the economy.
Regarding ERIC stock, some 5 million shares have changed hands as of this writing. That’s below its daily average trading volume of about 10.6 million shares. ERIC stock is also down 1.3% as of Tuesday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.