Ericsson is a Swedish multinational networking and telecommunications company that sells infrastructure, software, and services in information and communications technology for telecommunications.
The business and ATT have worked together for more than 20 years, and just recently, they signed a five-year partnership to speed up the rollout of ATT 5G through Ericsson’s 5G Starter Program.
With this agreement, the recently acquired C-band spectrum of the service providers will be deployed, and 5G will go live.
The stock of Ericsson has underwhelmed investors, falling about 30% over the past month, underperforming the S&P 500, which fell about 3% during this time.
But, as part of a bigger global cost-cutting strategy, the corporation anticipates laying off about 1,400 people in Sweden due to a decline in demand in several nations, mainly North America.
By the end of 2023, the corporation intends to lower expenditures by 9 billion crowns ($880 million). To manage staff reductions, Ericsson and the Swedish unions have agreed. Ericsson intends to implement the cutbacks through a voluntary program.
It’s important to note that the layoffs in Sweden are part of a bigger cost-cutting strategy, and several thousand layoffs in other nations are likely to be revealed in the coming days.
To recoup losses, Ericsson previously underwent significant cost-cutting in 2017, leading to thousands of employees firing.