Ericsson is cutting 1,600 jobs in Sweden, 12% of its domestic workforce, as 5G demand weakens globally. Telecom equipment spending has plateaued after the initial 5G buildout wave, leaving Ericsson with capacity built for a growth cycle that ended sooner than expected.
The cuts are concentrated in Sweden, where Ericsson is headquartered and where labor costs are among the highest in Europe. The company is accelerating its shift toward software and AI-powered network management, which requires fewer but differently-skilled workers. For Sweden's tech sector, losing 1,600 Ericsson jobs is a significant blow.