Ericsson to outsource 750 U.S. jobs
STOCKHOLM, SWEDEN — Telecommunications giant Ericsson notified 750 of its American workforce of imminent job cuts.
A company memo reveals a shift in the company’s field service strategy, revealing that all field services in the United States (U.S.) will transition to “external providers” beginning October 1, 2023, leading to job terminations effective September 29, 2023.
The decision to downsize stems from decreased market demand and the prohibitive cost of maintaining internal service operations.
“The self-perform capability proved critical for us to accelerate local service delivery capabilities during the peak of the 5G cycle, with quality and an unwavering commitment to safety, setting a new standard for tower technicians in the US,” the memo reads.
“However, with the downturn in market demand, we can no longer justify the cost this unique capability represents,” it added.
Earlier this year, Ericsson announced a global reduction of 8,500 positions. Despite the layoffs, the company, employing over 11,500 people in North America and more than 103,000 globally, maintains that service delivery will remain unaffected.
The action prompts speculation about the company’s future structure and the potential impact on its worldwide personnel.
