An internet company is now laying off a whopping 1,200 employees due to a steep decline in 5G spending, sources confirm.
Broadband internet communications company Ericsson announced on Monday that it will lay off about 1,200 employees in Sweden.
The company had 99,950 employees, including 10,744 workers in North America, at the end of 2023, according to a federal filing.
Last year, the company laid off 8,500 staffers, or about 8% of its workforce, to cut costs, per CNBC.
The company said in a statement that the downsizing is part of a broader cost-cutting plan this year that will include more efforts to boost efficiency as it “expects a challenging mobile networks market in 2024, with further volume contraction as customers remain cautious.”
“The cost saving initiatives cover various areas such as reduction of consultants, streamlining of processes, and reduced facilities,” the company said, adding that it had begun negotiations with unions.
“We have initiated information and negotiations with the unions and we will not pre-empt the outcome of them,” an Ericsson spokesperson wrote in an email to CNBC.
“Our aim is to manage this process with fairness, respect, professionalism and in line with the Collective Bargain Agreement and Swedish labor law.”
Monday’s announcement comes as companies across the tech industry continue to slash jobs in large numbers.
More than 50,000 workers have been laid off from over 200 tech companies since the start of the year, according to Layoffs.fyi.
And in 2023, more than 260,000 workers were let go from almost 1,200 tech companies.
Industry giants Alphabet, Amazon, Meta and Microsoft have all contributed to the flurry of job cuts this year, along with companies including Cisco, DocuSign, Snap
and Zoom, in hopes of raising profits through focused spending and efficiency fueled by artificial intelligence.
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Also Read: A Giant Company Now Announces Unexpected Layoffs in Michigan
Other Economy News Today
A massive city mall with 70 stores is now closing ten years ahead of its contract due to a rapid surge in crime, sources confirm.
Retail operator Westfield announced that it intends to end its lease and sever all operations with the Fulton Center in Lower Manhattan.
Westfield put pen to paper on a two-decade long lease in 2014, reports The-Sun.
However, as levels of theft and homelessness continue to spiral, the company have decided to forego the contract 10 years early.
Westfield has cited soaring crime and quality of life concerns as their reason for terminating the lease.
In response, the MTA is suing the retail management company for breaking the lease.
“The rate of subtenant vacancies is at an all-time high,” Westfield wrote in a legal filing.
“Few businesses want to open and operate a store where their employees and customers regularly would experience theft, property damage, bodily harm, or threats.”
Workers and subway riders told ABC 7 News that homeless encampments routinely congregate outside the building.
“The real problem is homelessness here, you can just look out the window and see people roaming around, it probably lessened because it’s getting nicer outside but during the winter months, it’s a lot,” said Nia Moore, who works at Birch Coffee.
Retail theft in the Big Apple has already spiked by 4% in 2024.
“While we are unable to comment on specific pending litigation, we have full confidence in the NYPD, which has surged officers into the subway, to ensure safety across the transit system, including at Fulton Center,” a spokesperson for the MTA said in a statement.
2023 saw a number of retailers close down, often citing losses from theft.
In part fueled by the rise of online shopping and ongoing inflation, many stores have not been able to remain open.
Stores like Target, which closed nine stores in major cities last year, said that theft made certain locations unsafe.
One of the greatest concerns for stores, organized retail crime, involves mass thefts by groups of shoplifters.
By stealing in large groups, thieves make it difficult for authorities to intervene.
Widely shared images of “flash mob” organized robberies have caused panic for many retailers in recent months.
Though theft is just part of the picture, many blame shoplifting for the nearly 3,000 stores that closed across the country in 2023.
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Also Read: A Grocery Brand Is Now Led Into An Unexpected Bankruptcy
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