Ericsson announced a reduction of about 1,600 positions in Sweden, the largest single‑country workforce cut in its history, as part of a broader global cost‑control program aimed at strengthening its balance sheet while preserving investment in 5G and programmable networks.
The decision follows a decline in 5G spending and intensified competition from rivals such as Nokia and Huawei. Management said the cuts are necessary to offset the slowdown in carrier demand and to keep operating expenses aligned with revenue growth, ensuring that capital can be directed toward high‑margin software and network‑automation initiatives.
Ericsson’s Q3 2025 results showed a 4% drop in net sales but a 28.1% adjusted EBITA margin, the highest in the company’s history, driven by a capital gain from the sale of iconectiv. The 1,600‑job reduction is expected to further improve operating leverage, with the company estimating a cost saving of several hundred million euros over the next 12 months.
Ralf Begner, Ericsson’s press officer, said the layoffs are a consequence of “competitive pressure in the telecom industry” and that “inflationary pressure continues.” CEO Börje Ekholm added that the company remains focused on delivering programmable networks, noting that 5G standalone roll‑outs have lagged in key markets, which has amplified the need for disciplined spending.
Investors have viewed the announcement as a continuation of Ericsson’s disciplined cost‑management program. While the market reaction was mild, the company’s share price has declined 8.5% over the past year, reflecting broader concerns about the telecom equipment sector’s growth prospects.
Ericsson will report its Q4 2025 financial results on January 23 2026, which analysts expect to provide further insight into the impact of the workforce reduction and the company’s progress toward its margin expansion targets.
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