Ericsson (NASDAQ:ERIC) layoffs are a hot topic on Thursday as reports claim that the telecommunications giant is preparing to cut jobs.
According to a company spokesperson, Ericsson is going to reduce its headcount by more than 200 employees. These job cuts are coming for workers based in its Chinese research and development division.
Investors will note that these layoffs were announced shortly after the release of Ericsson’s first-quarter earnings report. The company warned of headwinds in this latest report.
Here’s what Ericsson CEO Börje Ekholm said in that report.
“We expect a further decline in the RAN market, at least through the end of this year, as customers remain cautious with their investments and the pace of investment in India continues to normalize. Dell’Oro estimates the global RAN equipment market will decline by -4% in 2024, which may prove optimistic.”
Ericsson Joins Layoffs Trend
More and more companies have been announcing layoffs recently as they deal with continued economic pressure. Two factors behind this are rising inflation and the increased interest rates trying to combat that.
This is weighing on companies as it affects consumer habits. That has many cutting jobs as a way to reduce costs until inflation settles down.
ERIC stock is up 2.7% as of Thursday morning and is down 18.2% since the start of the year.
Investors seeking out more of the most recent stock market news are in luck!
We have all of the hottest market happenings worth reading about on Thursday! That includes layoffs at Rivian Automotive (NASDAQ:RIVN) and Walgreens (NASDAQ:WBA), as well as other market news. You can catch up on that info below!
More Thursday Stock Market News
- Rivian Layoffs 2024: What to Know About the Latest Round of RIVN Job Cuts
- Why Is Lithium Americas (LAC) Stock Down 28% Today?
- Walgreens Layoffs 2024: What to Know About the Latest WBA Job Cuts
On the date of publication, William White did not hold (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.
