The company has been gradually reducing its workforce over the past three years, as weaker-than-expected 5G investment and U.S. import tariffs have weighed on revenues. In Sweden, the company had already announced layoffs of 1,400 employees in 2023 and 1,200 in 2024.
A company spokesperson told Reuters in an emailed statement that the latest reduction “is one of several global initiatives aimed at improving the company’s overall cost structure to maintain important investments that will secure our competitiveness and technology leadership.”
Ericsson has filed a notice with the Swedish Public Employment Service and begun consultations with relevant trade unions. The company added that efforts to improve operational efficiency would continue worldwide but would not be announced separately.
Globally, Ericsson employed roughly 90,000 people as of December 31, with about 12,600 based in Sweden. This compares with nearly 100,000 employees three years ago, reflecting a gradual downsizing effort in response to challenging market conditions.
The company’s restructuring efforts have helped support its margins, with shares rising 1.7% in early trading on the Stockholm stock exchange on Thursday. Ericsson’s stock, however, fell about 3% in 2025, underperforming Nordic rival Nokia, whose stock gained more than 20% over the year following a renewed focus on artificial intelligence, despite losing U.S. market share to Ericsson.
Analysts from J.P. Morgan highlighted cost savings as a key factor that could accelerate an improvement in Ericsson’s margins ahead of expectations. The company is scheduled to release its fourth-quarter results on January 23.