Tightens the Belt: 1,600 More Jobs Cut in Swede

 

The telecom landscape is shifting, and industry pioneer Ericsson is feeling the pressure. On January 15, 2026, the Swedish networking giant announced it will cut approximately 1,600 jobs in its home country. This latest move marks another chapter in the company’s multi-year effort to streamline operations and protect its margins amid a sluggish global market.

For many, this news feels like a case of "deja vu." Ericsson has been steadily reducing its headcount for three years, including cuts of 1,200 in 2024 and 1,400 in 2023 within Sweden alone.

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Why the Deep Cuts?

The decision isn’t just about lowering a number on a spreadsheet; it’s a response to a complex cocktail of economic and industry-specific challenges:

• Slower 5G Spending: While 5G was promised as a massive boom, the reality has been more measured. Many telecom operators have slowed their investment cycles, leaving equipment suppliers like Ericsson with "lumpy" demand.

• Geopolitical Friction: The impact of U.S. import tariffs and the shifting geopolitical climate have increased operational costs, forcing the company to look inward for savings.

• A Pivot to "Programmable" Networks: Ericsson is aggressively shifting its focus toward AI-driven, programmable networks. To fund this transition, they are trimming traditional roles to reinvest in high-growth areas like automation and open RAN (Radio Access Network) technology.

"The proposed staff reduction is part of global initiatives to improve cost position while maintaining investments critical to Ericsson's technology leadership." — Official Ericsson Statement

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The Impact in Sweden

Sweden remains the heart of Ericsson’s R&D and strategic operations. However, these cuts hit hard, representing roughly 12–13% of their Swedish workforce.

Year	Swedish Job Cuts	Total Global Headcount (Approx.)
2023	1,400	~100,000
2024	1,200	~95,000
2026	1,600 (Proposed)	< 90,000

The company has already initiated negotiations with Swedish trade unions and filed a formal notice with the Swedish Public Employment Service.

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A Look Ahead: Efficiency Over Expansion

Despite the layoffs, Ericsson’s financial health isn't in a tailspin. In mid-2025, the company reported a strong operating profit, signaling that their cost-cutting measures are working to stabilize the bottom line. The strategy is clear: be leaner, be smarter, and bet big on AI.

As we head into late 2026, the industry will be watching to see if these "operational efficiencies" allow Ericsson to outpace rivals like Nokia and Huawei, or if the repeated cuts will eventually impact their ability to innovate at scale.

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What do you think about the future of the telecom industry? If you’re interested in how AI is reshaping the tech workforce, I can look into recent trends in AI-driven job displacement versus creation for you. Would you like me to do that?