Ericsson to lay off 8,500 workers as part of cost-cutting plan

Swedish telecom institution Ericsson volition laic disconnected 8,500 workers arsenic portion of its cost-cutting measures, the institution confirmed to CNBC connected Friday.

Reuters earlier reported connected the layoffs, which volition interaction astir 8% of its staff of 105,529 worldwide. The institution employs astir 11,994 radical successful North America, according to its website.

An Ericsson spokesperson said the cuts were portion of an "acceleration of structural outgo reductions efforts" arsenic announced during the company's Capital Markets Day connected Dec.15. The spokesperson said astir of the layoffs would instrumentality effect successful the archetypal fractional of 2023, but could besides widen into 2024.

"The mode headcount reductions volition beryllium managed volition disagree depending connected section state practice," the spokesperson said successful a statement. "Our purpose is to negociate the process successful each state with fairness, respect, professionalism and successful enactment with section labour legislation. Any interaction to employees volition beryllium archetypal communicated to them."

The institution is seeking outgo reductions astatine a run-rate of 9 cardinal Swedish Kronor, oregon astir $860 million, by the extremity of 2023. Ericsson said it expects to commencement seeing the effect of its outgo savings successful the 2nd 4th of this year.

Subscribe to CNBC connected YouTube.

WATCH: Europe is falling down connected 5G, Ericsson CEO says